Representation of VG Trustee Limited re M Trust [2018] JRC 205 (07 November 2018)

Representation of VG Trustee Limited re M Trust [2018] JRC 205 (07 November 2018)

The trustee is entitled and obliged to collect the Madoff cheque as trust property. There is no evidence the funds are tainted, and the trustee, as a regulated Jersey trust company, is a fit and proper account holder. The court directs the trustee to open a Jersey bank account to receive the funds, as this is the most appropriate and direct method for fulfilling its duties.

Citation
[2018] JRC 205
Parties
Representor / Trustee: VG Trustee Limited; Settlor: A; Notified Party: Her Majesty's Attorney General; Notified Party: X bank Jersey
Jurisdiction
Jersey
Judgment Date
07 November 2018
Procedural Posture
Trustee Representation / Application for Directions / Application for Directions Under Article 51 of the Trusts (jersey) Law 1984
Outcome
Application granted
Legal Topics
Trustee Powers and Duties, Banking Facilities for Trusts, Money Laundering Risk, Conviction of Settlor, Victim Compensation Funds
Trusts and Estates Banking Law Trustee Powers and Duties Banking Facilities for Trusts Money Laundering Risk Conviction of Settlor Victim Compensation Funds

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Parties

VG Trustee Limited

Representor / Trustee

A

Settlor

Her Majesty's Attorney General

Notified Party

X bank Jersey

Notified Party

Procedural Posture

Trustee Representation / Application for Directions / Application for Directions Under Article 51 of the Trusts (jersey) Law 1984

Legal Issues

  1. 1 Whether the trustee can be directed to open a Jersey bank account to receive compensation funds where banking facilities are denied due to the settlor's conviction
  2. 2 Whether the Madoff cheque constitutes tainted funds
  3. 3 Whether the trustee is fulfilling its duty to collect trust property

Ratio Decidendi

The trustee is entitled and obliged to collect the Madoff cheque as trust property. There is no evidence the funds are tainted, and the trustee, as a regulated Jersey trust company, is a fit and proper account holder. The court directs the trustee to open a Jersey bank account to receive the funds, as this is the most appropriate and direct method for fulfilling its duties.

Court Disposition

Application granted

Orders

  • VG Trustee Limited is ordered to open an account for the Trust with a bank in Jersey and present the Madoff cheque for credit to that account.
  • Liberty to apply is granted in case alternative arrangements (such as use of a client account) become necessary.