Representation of Altum Trustees Ltd (formerly LGL Trustees Ltd) and VG Trustees Ltd re Andha Trust [2023] JRC 080 (18 May 2023)

Representation of Altum Trustees Ltd (formerly LGL Trustees Ltd) and VG Trustees Ltd re Andha Trust [2023] JRC 080 (18 May 2023)

The trustee's errors in failing to comply with the Loan Agreement were administrative and not actionable mistakes for the purposes of Article 47G. The trustee did not demonstrate that, but for the alleged mistake, it would have exercised its power to borrow differently. The BDO advice was prudent and consistent with the law. Even if the statutory tests were met, the court would exercise its discretion to refuse relief, as the tainting arose from the trustee's own failure to comply with straightforward obligations, not from any defect in the exercise of the power to borrow or the advice received.

Citation
[2023] JRC 080
Parties
Representor/trustee: Altum Trustees Limited; Representor/trustee: VG Trustees Limited; Beneficiaries (represented Parties): Minor children and remoter issue of the settlor; Settlor: Settlor (unnamed)
Jurisdiction
Jersey
Judgment Date
18 May 2023
Procedural Posture
Representation (trust Law) / Judgment on Application to Set Aside Exercise of Power Under Articles 47 G and 47 H of the Trusts (jersey) Law 1984
Outcome
Application dismissed; relief under Articles 47G and 47H refused.
Legal Topics
Mistake in Exercise of Trustee Powers, Tainting of Protected Settlements, UK Tax Consequences for Offshore Trusts, Setting Aside Trust Transactions, Fiduciary Duties of Trustees
Trusts Taxation Private International Law Mistake in Exercise of Trustee Powers Tainting of Protected Settlements UK Tax Consequences for Offshore Trusts Setting Aside Trust Transactions Fiduciary Duties of Trustees

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Parties

Altum Trustees Limited

Representor/trustee

VG Trustees Limited

Representor/trustee

Minor children and remoter issue of the settlor

Beneficiaries (represented Parties)

Settlor (unnamed)

Settlor

Procedural Posture

Representation (trust Law) / Judgment on Application to Set Aside Exercise of Power Under Articles 47 G and 47 H of the Trusts (jersey) Law 1984

Legal Issues

  1. 1 Whether the trustee made a qualifying mistake in entering into the Loan Agreement under Article 47G
  2. 2 Whether the trustee failed to take into account relevant considerations under Article 47H
  3. 3 Whether the exercise of the power to borrow should be set aside due to mistake or failure to consider relevant matters

Ratio Decidendi

The trustee's errors in failing to comply with the Loan Agreement were administrative and not actionable mistakes for the purposes of Article 47G. The trustee did not demonstrate that, but for the alleged mistake, it would have exercised its power to borrow differently. The BDO advice was prudent and consistent with the law. Even if the statutory tests were met, the court would exercise its discretion to refuse relief, as the tainting arose from the trustee's own failure to comply with straightforward obligations, not from any defect in the exercise of the power to borrow or the advice received.

Court Disposition

Application dismissed; relief under Articles 47G and 47H refused.

Orders

  • The court declines to set aside or vary the Loan Agreement under Articles 47G or 47H of the Trusts (Jersey) Law 1984.
  • No declaration or retrospective variation of the Loan Agreement is granted.