Representation of A Ltd and in the matter of the B Trust [2017] JRC 024 (14 February 2017)

Representation of A Ltd and in the matter of the B Trust [2017] JRC 024 (14 February 2017)

The Court found that the 2007 deed did not reflect the true intention of the Settlor, who intended Mrs C to be the sole beneficiary after his death and did not intend to benefit charity. The failure to make an overriding appointment under clause 7 was a genuine mistake. The requirements for rectification were satisfied: there was a genuine mistake, full and frank disclosure, and no other practical remedy. The Court exercised its discretion to rectify the deed to give effect to the Settlor's intentions.

Citation
[2017] JRC 024
Parties
Trustee: Representor; Charitable Interest Representative: HM Attorney General; Added Beneficiary: Mrs C; Excluded Beneficiary: D; Excluded Beneficiary: E; Excluded Beneficiary: G; Excluded Beneficiary: H
Jurisdiction
Jersey
Judgment Date
14 February 2017
Procedural Posture
Trust Rectification Application / Judgment on Representation
Outcome
Rectification granted
Legal Topics
Rectification of Trust Deed, Mistake in Trust Administration, Beneficiary Exclusion and Addition, Trustee Powers, Charitable Trusts
Trusts Equity Rectification of Trust Deed Mistake in Trust Administration Beneficiary Exclusion and Addition Trustee Powers Charitable Trusts

Case Brief

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Parties

Representor

Trustee

HM Attorney General

Charitable Interest Representative

Mrs C

Added Beneficiary

D

Excluded Beneficiary

E

Excluded Beneficiary

G

Excluded Beneficiary

H

Excluded Beneficiary

Procedural Posture

Trust Rectification Application / Judgment on Representation

Legal Issues

  1. 1 Whether the 2007 deed of exclusion and addition of beneficiaries was made by mistake and failed to reflect the true intention of the Settlor and trustee
  2. 2 Whether the trust deed should be rectified to give effect to the Settlor's intentions

Ratio Decidendi

The Court found that the 2007 deed did not reflect the true intention of the Settlor, who intended Mrs C to be the sole beneficiary after his death and did not intend to benefit charity. The failure to make an overriding appointment under clause 7 was a genuine mistake. The requirements for rectification were satisfied: there was a genuine mistake, full and frank disclosure, and no other practical remedy. The Court exercised its discretion to rectify the deed to give effect to the Settlor's intentions.

Court Disposition

Rectification granted

Orders

  • The 2007 deed of exclusion and addition is rectified to reflect an irrevocable appointment under clause 7 in favour of Mrs C absolutely, effective as of 1 August 2007.
  • The trustees hold, and have at all times since the Settlor's death held, the trust property for Mrs C absolutely.