Representation of W re H Trust (Royal Court : Hearing (Civil) : Binnington : Trust) [2025] JRC 317 (28 November 2025)

Representation of W re H Trust (Royal Court : Hearing (Civil) : Binnington : Trust) [2025] JRC 317 (28 November 2025)

The Representor made a mistake as to his UK deemed domicile status and the inheritance tax consequences of transferring the Policies to the Trust. The mistake was sufficiently serious, resulting in an immediate tax liability of over GBP 1 million. The Representor would not have made the transfer but for the mistake. The relief sought is just and not barred by delay or lack of tax advice. The transfers are set aside under Article 47E(2) of the Trusts (Jersey) Law 1984.

Citation
[2025] JRC 317
Parties
Representor: W; Current Trustee: B; Protector: C; Beneficiary: D; Beneficiary: E; Beneficiary: F; Stepson/former Beneficiary: G; Notified Party: His Majesty's Revenue and Customs (HMRC)
Jurisdiction
Jersey
Judgment Date
28 November 2025
Procedural Posture
Representation (application) / Final Judgment
Outcome
Application granted; transfers set aside.
Legal Topics
Mistake in Trust Settlement, Inheritance Tax Liability, Voidable Transfers, Jersey Trust Law
Trusts Taxation Private International Law Mistake in Trust Settlement Inheritance Tax Liability Voidable Transfers Jersey Trust Law

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Parties

W

Representor

B

Current Trustee

C

Protector

D

Beneficiary

E

Beneficiary

F

Beneficiary

G

Stepson/former Beneficiary

His Majesty's Revenue and Customs (HMRC)

Notified Party

Procedural Posture

Representation (application) / Final Judgment

Legal Issues

  1. 1 Whether the transfer of life insurance policies to the H Trust should be set aside due to mistake under Article 47E of the Trusts (Jersey) Law 1984
  2. 2 Whether the mistake was sufficiently serious to justify relief
  3. 3 Whether delay or lack of tax advice bars relief

Ratio Decidendi

The Representor made a mistake as to his UK deemed domicile status and the inheritance tax consequences of transferring the Policies to the Trust. The mistake was sufficiently serious, resulting in an immediate tax liability of over GBP 1 million. The Representor would not have made the transfer but for the mistake. The relief sought is just and not barred by delay or lack of tax advice. The transfers are set aside under Article 47E(2) of the Trusts (Jersey) Law 1984.

Court Disposition

Application granted; transfers set aside.

Orders

  • Declaration that the transfers of the Policies by the Representor to the Trust are voidable and set aside from the time originally made.
  • Consequential orders ratifying actions taken by the Trustee and indemnifying third parties where appropriate.