In the matter of the DDD Settlements [2011] JRC 243 (28 December 2011)

In the matter of the DDD Settlements [2011] JRC 243 (28 December 2011)

The removal of the Settlor from the excluded class of beneficiaries is approved because it enables tax mitigation for UK resident beneficiaries, which is a clear benefit to unborn beneficiaries under Article 47 of the Trust (Jersey) Law 1984. Arguments based on fairness or moral obligation to the Settlor do not satisfy the statutory requirement of benefit to unborn beneficiaries.

Citation
[2011] JRC 243
Parties
Applicant: A; Applicant: B; Respondent: The Trustee; Representative of Unborn and Unascertained Beneficiaries: Advocate Le Maistre
Jurisdiction
Jersey
Judgment Date
28 December 2011
Procedural Posture
Trust Variation Application / Judgment
Outcome
application granted
Legal Topics
Variation of Trusts, Excluded Beneficiaries, Tax Mitigation, Benefit to Unborn Beneficiaries
Trusts Private Client Tax Variation of Trusts Excluded Beneficiaries Tax Mitigation Benefit to Unborn Beneficiaries

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Parties

A

Applicant

B

Applicant

The Trustee

Respondent

Advocate Le Maistre

Representative of Unborn and Unascertained Beneficiaries

Procedural Posture

Trust Variation Application / Judgment

Legal Issues

  1. 1 Whether the exclusion of the Settlor from benefit under the Settlements should be revoked
  2. 2 Whether removing the Settlor from the excluded class is for the benefit of unborn beneficiaries under Article 47 of the Trust (Jersey) Law 1984

Ratio Decidendi

The removal of the Settlor from the excluded class of beneficiaries is approved because it enables tax mitigation for UK resident beneficiaries, which is a clear benefit to unborn beneficiaries under Article 47 of the Trust (Jersey) Law 1984. Arguments based on fairness or moral obligation to the Settlor do not satisfy the statutory requirement of benefit to unborn beneficiaries.

Court Disposition

application granted

Orders

  • Revocation of the exclusion of the Settlor from benefit under the DDD 1976 and DDD 1979 Settlements as achieved by the Deeds of Exclusion dated 29th June 1984.
  • Variation of the terms of the DDD 2005 Settlement to remove the Settlor from the list of excluded persons contained in the Fourth Schedule.