Representation of E, J and K re Noor Trust - 03-Feb-2021 [2021] JRC 033 (03 February 2021)

Representation of E, J and K re Noor Trust - 03-Feb-2021 [2021] JRC 033 (03 February 2021)

The transfers into the Noor Trust from the UK bank account were made under a fundamental mistake as to the UK inheritance tax consequences. The mistake was sufficiently serious, and the settlors would not have made the transfers but for the mistake. It is just to set aside the transfers under Article 47E of the Trusts (Jersey) Law 1984.

Citation
[2021] JRC 033
Parties
Representor: E; Representor: J; Representor: K; Trustee: EFG Trust Company Limited; Notified Party: Her Majesty's Attorney General; Notified Party: HMRC
Jurisdiction
Jersey
Judgment Date
03 February 2021
Procedural Posture
Trust Law Application / Judgment on Application to Set Aside Transfers on Grounds of Mistake
Outcome
Application granted. Transfers set aside on grounds of mistake.
Legal Topics
Setting Aside Trust Transfers, Mistake in Trust Law, Inheritance Tax Liability, Jersey Trust Law, Bare Trusts
Trusts Taxation Private International Law Setting Aside Trust Transfers Mistake in Trust Law Inheritance Tax Liability Jersey Trust Law Bare Trusts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 9
Sign in to unlock

Parties

E

Representor

J

Representor

K

Representor

EFG Trust Company Limited

Trustee

Her Majesty's Attorney General

Notified Party

HMRC

Notified Party

Procedural Posture

Trust Law Application / Judgment on Application to Set Aside Transfers on Grounds of Mistake

Legal Issues

  1. 1 Whether transfers into the Noor Trust from a UK bank account should be set aside on grounds of mistake under Article 47E of the Trusts (Jersey) Law 1984
  2. 2 Whether the mistake as to UK inheritance tax consequences was sufficiently serious to justify relief
  3. 3 Consequences of setting aside the transfers for trust administration and tax liability

Ratio Decidendi

The transfers into the Noor Trust from the UK bank account were made under a fundamental mistake as to the UK inheritance tax consequences. The mistake was sufficiently serious, and the settlors would not have made the transfers but for the mistake. It is just to set aside the transfers under Article 47E of the Trusts (Jersey) Law 1984.

Court Disposition

Application granted. Transfers set aside on grounds of mistake.

Orders

  • Transfers from the UK account into the Noor Trust are set aside and declared voided and of no effect from the dates they were made under Article 47E of the Trusts (Jersey) Law 1984.
  • The funds represented by the transfers are held on bare trust by the Trustee for the settlors (L, E, J before November 2011; all four settlors from November 2011), with L's interest passing by survivorship.