In the matter of the Representation of L [2011] JRC 085 (20 April 2011)

In the matter of the Representation of L [2011] JRC 085 (20 April 2011)

The Representor would not have executed the deed of appointment had she known it would exclude her from benefit and create a substantial tax liability. The decision was made in ignorance of relevant factors, justifying relief under the Hastings-Bass principle.

Citation
[2011] JRC 085
Parties
Representor/protector/applicant: Mrs P; Original Trustee/respondent: HSBC Trustee (C.I.) Limited; Appointor: Merrill Lynch Bank and Trust Company (Cayman) Limited; Trustee: Mr James Edmondson; Contingent Beneficiary: NSPCC; Interested Party: Her Majesty's Customs and Excise (HMRC); Interested Party: Her Majesty's Attorney General
Jurisdiction
Jersey
Judgment Date
20 April 2011
Procedural Posture
Representation (application) Under Trust Law / Judgment on Application for Relief Under Hastings Bass Principle
Outcome
Application granted. Relief under the Hastings-Bass principle granted. Appointment of Representor as trustee set aside.
Legal Topics
Hastings Bass Principle, Trustee Appointment, Excluded Persons, Inheritance Tax Liability, Protector Powers
Trusts Equity Taxation Hastings Bass Principle Trustee Appointment Excluded Persons Inheritance Tax Liability Protector Powers

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Parties

Mrs P

Representor/protector/applicant

HSBC Trustee (C.I.) Limited

Original Trustee/respondent

Merrill Lynch Bank and Trust Company (Cayman) Limited

Appointor

Mr James Edmondson

Trustee

NSPCC

Contingent Beneficiary

Her Majesty's Customs and Excise (HMRC)

Interested Party

Her Majesty's Attorney General

Interested Party

Procedural Posture

Representation (application) Under Trust Law / Judgment on Application for Relief Under Hastings Bass Principle

Legal Issues

  1. 1 Whether the appointment of the Representor as trustee should be set aside under the Hastings-Bass principle due to unintended adverse consequences, including exclusion from benefit and tax liability

Ratio Decidendi

The Representor would not have executed the deed of appointment had she known it would exclude her from benefit and create a substantial tax liability. The decision was made in ignorance of relevant factors, justifying relief under the Hastings-Bass principle.

Court Disposition

Application granted. Relief under the Hastings-Bass principle granted. Appointment of Representor as trustee set aside.

Orders

  • The appointment of the Representor as trustee is set aside and declared of no effect.
  • HSBC is deemed to have continued as co-trustee with Mr Edmondson.