Representation of NBK Trustees (Jersey) Limited re C Trust [2024] JRC 133 (14 June 2024)

Representation of NBK Trustees (Jersey) Limited re C Trust [2024] JRC 133 (14 June 2024)

The Trust Deed failed to reflect the true intention of the Settlor and Original Trustee, which was to permanently exclude the Settlor from benefit under the Trust. Cogent evidence from contemporaneous documents, professional advice, and affidavits established this intention. The requirements for rectification under Guernsey law were satisfied, including the absence of any practical alternative remedy and no undue delay. Rectification was therefore granted to amend the definition of Excluded Persons to include the Settlor.

Citation
[2024] JRC 133
Parties
Representor: NBK Trustees (Jersey) Limited; Settlor: D; Original Trustee: AUB Trustees (Guernsey) Limited; Beneficiary: E; Beneficiary: F; Beneficiary: G; Beneficiary (deceased): H; Beneficiary: J; Beneficiary: K
Jurisdiction
Jersey
Judgment Date
14 June 2024
Procedural Posture
Application for Rectification of Trust Instrument / Judgment Granting Rectification
Outcome
Application for rectification granted
Legal Topics
Rectification of Trust Instruments, Mistake in Trust Drafting, Jurisdiction of Jersey Court Over Foreign Trusts, Excluded Persons Under Trust Law, Inheritance Tax Planning
Trusts and Estates Private International Law Rectification of Trust Instruments Mistake in Trust Drafting Jurisdiction of Jersey Court Over Foreign Trusts Excluded Persons Under Trust Law Inheritance Tax Planning

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Parties

NBK Trustees (Jersey) Limited

Representor

D

Settlor

AUB Trustees (Guernsey) Limited

Original Trustee

E

Beneficiary

F

Beneficiary

G

Beneficiary

H

Beneficiary (deceased)

J

Beneficiary

K

Beneficiary

Procedural Posture

Application for Rectification of Trust Instrument / Judgment Granting Rectification

Legal Issues

  1. 1 Whether the Trust Deed failed to reflect the true intention of the Settlor and Original Trustee by omitting to expressly exclude the Settlor as a beneficiary
  2. 2 Whether the requirements for rectification under Guernsey law are met

Ratio Decidendi

The Trust Deed failed to reflect the true intention of the Settlor and Original Trustee, which was to permanently exclude the Settlor from benefit under the Trust. Cogent evidence from contemporaneous documents, professional advice, and affidavits established this intention. The requirements for rectification under Guernsey law were satisfied, including the absence of any practical alternative remedy and no undue delay. Rectification was therefore granted to amend the definition of Excluded Persons to include the Settlor.

Court Disposition

Application for rectification granted

Orders

  • The definition of Excluded Persons in Clause 1.7 of the Trust Instrument is amended to include 'the Settlor and' between the words 'means' and 'any person'.
  • Representor is approved to recover its costs of the application for rectification out of Trust assets.