The Court of Appeal held that, on the proper construction of the will of the late George Adams, the proceeds of sale or transfer of the Sweeps business must be held on the trusts as to net profits contained in clauses Y and T (via clauses Z, CC and FF) of the will, and that there was no power under the will itself for the trustees to distribute those proceeds directly to beneficiaries. Distribution could only occur pursuant to the rule in Saunders v Vautier or by variation of trusts under ss 63 or 63A of the Trustee Act 1958 (Vic). The Court declined to make orders that would predetermine how the trial judge should exercise discretion on any future application under those statutory provisions, holding that such a question was academic until an application was actually made.
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