A challenge to established law on discretionary trusts? - Re Richstar enterprises

Re Richstar Enterprises is a remarkable first instance decision of the Federal Court. A person able to 'effectively control' a discretionary trust was for that reason attributed with 'at the very least a contingent interest' in the assets of the trust. No other entitlement was shown. 'It is as good as certain', Justice French cynically observed, 'that [the trust controller] will receive the benefits of distribution either of income or capital or both'. This idea is dangerous, in the contexts of personal liability, insolvency and taxation. Established principles will be restated in order to deny that interests in trusts can be derived from the mere fact of control.