A & Ors v D & Ors [2017] EWHC 2222 (Ch) (12 September 2017)

A & Ors v D & Ors [2017] EWHC 2222 (Ch) (12 September 2017)

The court found, on clear evidence, that the trustees' settled intention was to create irrevocable 18 to 25 Trusts for A's three living children, compliant with s71D IHTA, and that the use of 'revocably' and reference to a class of beneficiaries in the Deeds of Appointment were drafting errors. Rectification was granted to bring the deeds into line with the trustees' true intention.

Citation
[2017] EWHC 2222 (Ch)
Parties
Claimant: A; Claimant: B; Claimant: C; First Defendant: D (by a litigation friend); First Defendant: E (by a litigation friend); First Defendant: F (by a litigation friend); Second Defendant: G (as representative of the class of unborn beneficiaries)
Jurisdiction
England and Wales
Judgment Date
12 September 2017
Procedural Posture
Chancery Division Trusts/rectification / Judgment After Trial of Claim for Construction and Rectification
Outcome
Claim for rectification granted
Legal Topics
Rectification of Trust Deeds, Construction of Trust Instruments, Inheritance Tax, 18 to 25 Trusts, Powers of Appointment
Equity and Trusts Taxation Rectification of Trust Deeds Construction of Trust Instruments Inheritance Tax 18 to 25 Trusts Powers of Appointment

Case Brief

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Parties

A

Claimant

B

Claimant

C

Claimant

D (by a litigation friend)

First Defendant

E (by a litigation friend)

First Defendant

F (by a litigation friend)

First Defendant

G (as representative of the class of unborn beneficiaries)

Second Defendant

Procedural Posture

Chancery Division Trusts/rectification / Judgment After Trial of Claim for Construction and Rectification

Legal Issues

  1. 1 Whether the Deeds of Appointment executed in 2008 should be rectified to reflect the trustees' true intention to create irrevocable 18 to 25 Trusts for the three living children of A, compliant with s71D Inheritance Tax Act 1984, rather than revocable trusts for a class of beneficiaries including unborn children.
  2. 2 Whether the use of 'revocably' in the Deeds of Appointment was a drafting error contrary to the trustees' settled intention.

Ratio Decidendi

The court found, on clear evidence, that the trustees' settled intention was to create irrevocable 18 to 25 Trusts for A's three living children, compliant with s71D IHTA, and that the use of 'revocably' and reference to a class of beneficiaries in the Deeds of Appointment were drafting errors. Rectification was granted to bring the deeds into line with the trustees' true intention.

Court Disposition

Claim for rectification granted

Orders

  • The Deeds of Appointment are to be rectified to reflect the trustees' true intention to create irrevocable 18 to 25 Trusts for A's three living children, compliant with s71D Inheritance Tax Act 1984.