In the matter of the M Trust [2017] JRC 198 (23 November 2017)

In the matter of the M Trust [2017] JRC 198 (23 November 2017)

The Representor made a genuine mistake in setting up the Trust due to lack of advice on UK tax consequences; the mistake was sufficiently serious that the transfers should be set aside under Article 11 of the Trusts (Jersey) Law 1984.

Citation
[2017] JRC 198
Parties
Representor: Mr A; Trustee: C Trustees Limited
Jurisdiction
Jersey
Judgment Date
23 November 2017
Procedural Posture
Application to Set Aside Trust Transfers / Judgment
Outcome
Application granted; transfers into Trust declared void.
Legal Topics
Mistake in Trust Creation, Tax Consequences of Trusts, Setting Aside Transfers to Trust
Trust Law Tax Law Mistake in Trust Creation Tax Consequences of Trusts Setting Aside Transfers to Trust

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Parties

Mr A

Representor

C Trustees Limited

Trustee

Procedural Posture

Application to Set Aside Trust Transfers / Judgment

Legal Issues

  1. 1 Whether the trust was established by mistake under Article 11 or 47E of the Trusts (Jersey) Law 1984
  2. 2 Whether the mistake was sufficiently serious to justify setting aside the transfers

Ratio Decidendi

The Representor made a genuine mistake in setting up the Trust due to lack of advice on UK tax consequences; the mistake was sufficiently serious that the transfers should be set aside under Article 11 of the Trusts (Jersey) Law 1984.

Court Disposition

Application granted; transfers into Trust declared void.

Orders

  • Transfers into Trust declared void under Article 11 of the Trusts (Jersey) Law 1984.
  • No order as to costs due to agreement between parties.