re Abacus v [2004] JRC 219 (16 December 2004)

re Abacus v [2004] JRC 219 (16 December 2004)

The trust deed was drafted contrary to the settlor's intentions due to mistakes by professional advisors; rectification is granted to align the deed with the true intentions, specifically regarding the power of appointment and the right to income.

Citation
[2004] JRC 219
Parties
Applicant: Abacus (C. I.) Limited; Representative for Unborn and Minor Beneficiaries: Advocate Robinson
Jurisdiction
Jersey
Judgment Date
16 December 2004
Procedural Posture
Application for Rectification of Trust / Judgment
Outcome
application granted
Legal Topics
Rectification of Trust Deed, Discretionary Trusts, Beneficiary Rights, Protector Consent
Trust Law Rectification of Trust Deed Discretionary Trusts Beneficiary Rights Protector Consent

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Parties

Abacus (C. I.) Limited

Applicant

Advocate Robinson

Representative for Unborn and Minor Beneficiaries

Procedural Posture

Application for Rectification of Trust / Judgment

Legal Issues

  1. 1 Whether the trust deed reflects the true intention of the settlor
  2. 2 Whether rectification is appropriate given the circumstances

Ratio Decidendi

The trust deed was drafted contrary to the settlor's intentions due to mistakes by professional advisors; rectification is granted to align the deed with the true intentions, specifically regarding the power of appointment and the right to income.

Court Disposition

application granted

Orders

  • Clause 3(1) rectified to provide trustees discretion to pay income to the principal beneficiary, with accumulation of unpaid income.
  • Clause 3(2) amended to begin with 'After the Initial Period the Trustees may...'.