In re A Trust v [2009] JLR 447 (16 December 2009)

In re A Trust v [2009] JLR 447 (16 December 2009)

A voluntary disposition into trust can be set aside for mistake of fact or law if the mistake is so serious that it would be unjust for the donee to retain the property, and the court is satisfied that the settlor/donor would not have entered the transaction but for the mistake; such transactions are voidable, not void ab initio.

Citation
[2009] JLR 447
Parties
Applicant: A Trust; Respondent: Unknown (Donee/Respondent)
Jurisdiction
Jersey
Judgment Date
16 December 2009
Procedural Posture
Trust Application / Judgment
Outcome
Disposition into trust set aside for mistake.
Legal Topics
Mistake in Trust Creation, Voluntary Disposition, Setting Aside Transactions
Trust Law Equity Mistake in Trust Creation Voluntary Disposition Setting Aside Transactions

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Parties

A Trust

Applicant

Unknown (Donee/Respondent)

Respondent

Procedural Posture

Trust Application / Judgment

Legal Issues

  1. 1 Whether a voluntary disposition into trust can be set aside for mistake of fact or law by the settlor/donor
  2. 2 Whether the mistake was so serious that it would be unjust for the donee to retain the property
  3. 3 Whether the court is satisfied that the settlor/donor would not have entered the transaction but for the mistake

Ratio Decidendi

A voluntary disposition into trust can be set aside for mistake of fact or law if the mistake is so serious that it would be unjust for the donee to retain the property, and the court is satisfied that the settlor/donor would not have entered the transaction but for the mistake; such transactions are voidable, not void ab initio.

Court Disposition

Disposition into trust set aside for mistake.

Orders

  • The voluntary disposition into trust is set aside.