Richard Colin Douglas Settlement [2000] JRC 56 (03 April 2000)

Richard Colin Douglas Settlement [2000] JRC 56 (03 April 2000)

The proposed variation is for the benefit of the unborn beneficiaries as it prevents depletion of the trust fund by approximately £500,000 in capital gains tax and provides greater flexibility for future tax planning. The avoidance or minimisation of tax is a legitimate benefit for beneficiaries, and the Court is satisfied that no disadvantage will ensue to the unborn beneficiaries from the proposed variation.

Citation
[2000] JRC 56
Parties
Settlor/applicant: Richard Colin Douglas; Trustee: Jasmine Trustees Limited; Beneficiary (wife): Jennifer Ann Douglas; Beneficiary (son): Gavin Fairlie Douglas; Beneficiary (son): Niall William Douglas; Representative for Unborn Beneficiaries: Advocate Lakeman
Jurisdiction
Jersey
Judgment Date
03 April 2000
Procedural Posture
Application Under Article 43 of the Trusts (jersey) Law 1984 / Judgment on Application for Variation of Trust
Outcome
Application granted; variation of trust approved
Legal Topics
Variation of Trusts, Tax Avoidance, Beneficiaries' Interests, Capital Gains Tax
Trusts and Estates Taxation Law Variation of Trusts Tax Avoidance Beneficiaries' Interests Capital Gains Tax

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 6 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Richard Colin Douglas

Settlor/applicant

Jasmine Trustees Limited

Trustee

Jennifer Ann Douglas

Beneficiary (wife)

Gavin Fairlie Douglas

Beneficiary (son)

Niall William Douglas

Beneficiary (son)

Advocate Lakeman

Representative for Unborn Beneficiaries

Procedural Posture

Application Under Article 43 of the Trusts (jersey) Law 1984 / Judgment on Application for Variation of Trust

Legal Issues

  1. 1 Whether the proposed variation of the 1990 Settlement is for the benefit of unborn children and remoter issue of the Settlor
  2. 2 Whether the Court should approve a trust variation primarily for tax avoidance purposes

Ratio Decidendi

The proposed variation is for the benefit of the unborn beneficiaries as it prevents depletion of the trust fund by approximately £500,000 in capital gains tax and provides greater flexibility for future tax planning. The avoidance or minimisation of tax is a legitimate benefit for beneficiaries, and the Court is satisfied that no disadvantage will ensue to the unborn beneficiaries from the proposed variation.

Court Disposition

Application granted; variation of trust approved

Orders

  • The proposed variation to the 1990 Settlement is approved, subject to inserting the words 'or income' after 'capital' on line 3 of the proposed new clause 4A(c).