ABC & Ors v JKL [2019] EWHC 2416 (Ch) (10 September 2019)

ABC & Ors v JKL [2019] EWHC 2416 (Ch) (10 September 2019)

The 2010 deed did not give effect to the trustees' intentions, as it both restricted the trustees' powers and triggered significant and unintended tax consequences. The evidence clearly established the trustees' true intention was only to extend the defendant's life interest. The conditions for rectification were met, and rectification was the minimum necessary to correct the flaws.

Citation
[2019] EWHC 2416 (Ch)
Parties
Claimant: ABC; Claimant: DEF; Claimant: GHI; Defendant: JKL
Jurisdiction
England and Wales
Judgment Date
10 September 2019
Procedural Posture
Part 8 Claim (rectification/rescission of Deed) / Judgment After Disposal Hearing
Outcome
Claim for rectification granted
Legal Topics
Rectification of Trust Deed, Mistake in Trust Documentation, Inheritance Tax Consequences, Trustee Powers, Beneficiary Rights
Equity Trusts and Estates Property Law Rectification of Trust Deed Mistake in Trust Documentation Inheritance Tax Consequences Trustee Powers Beneficiary Rights

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Parties

ABC

Claimant

DEF

Claimant

GHI

Claimant

JKL

Defendant

Procedural Posture

Part 8 Claim (rectification/rescission of Deed) / Judgment After Disposal Hearing

Legal Issues

  1. 1 Whether the 2010 deed should be rectified on the ground of mistake
  2. 2 Whether the 2010 deed failed to give effect to the trustees' intentions
  3. 3 Whether the 2010 deed triggered unintended tax consequences and restricted trustee powers

Ratio Decidendi

The 2010 deed did not give effect to the trustees' intentions, as it both restricted the trustees' powers and triggered significant and unintended tax consequences. The evidence clearly established the trustees' true intention was only to extend the defendant's life interest. The conditions for rectification were met, and rectification was the minimum necessary to correct the flaws.

Court Disposition

Claim for rectification granted

Orders

  • Rectification of the 2010 deed in the terms sought by the claimants