Representation of Viberts Executors Limited and Anor [2024] JRC 055 (07 March 2024)

Representation of Viberts Executors Limited and Anor [2024] JRC 055 (07 March 2024)

Court approved the Representors entering into the Memorandum of Understanding and payment of US estate taxes from B's estate, as the claim by BBHTC would inevitably succeed in the US, and settlement avoids unnecessary litigation and costs; approval is limited to assets located in the country where the foreign tax claim would be enforced; no recourse against individual beneficiaries beyond the authorised contribution.

Citation
[2024] JRC 055
Parties
Personal Representative/applicant: Viberts Executors Limited; Respondent/trustee of US Trust and Personal Representative of A's US Estate: Brown Brothers Harriman Trust Company N. A. (BBHTC); Executor of B's Movable Estate: Ross Badger; Beneficiary of A's US Estate and US Trust: M; Beneficiary of B's Immovable Estate: Y; Beneficiary of B's Immovable Estate: Z; Beneficiary of B's Immovable Estate: X
Jurisdiction
Jersey
Judgment Date
07 March 2024
Procedural Posture
Application for Court Blessing/approval / Final Judgment
Outcome
application approved
Legal Topics
Approval of Executor's Decision, Apportionment of Estate Tax Liability, Enforcement of Foreign Tax Claims, Distribution of Estate Assets
Trusts and Estates Private International Law Tax Law Approval of Executor's Decision Apportionment of Estate Tax Liability Enforcement of Foreign Tax Claims Distribution of Estate Assets

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Parties

Viberts Executors Limited

Personal Representative/applicant

Brown Brothers Harriman Trust Company N. A. (BBHTC)

Respondent/trustee of US Trust and Personal Representative of A's US Estate

Ross Badger

Executor of B's Movable Estate

M

Beneficiary of A's US Estate and US Trust

Y

Beneficiary of B's Immovable Estate

Z

Beneficiary of B's Immovable Estate

X

Beneficiary of B's Immovable Estate

Procedural Posture

Application for Court Blessing/approval / Final Judgment

Legal Issues

  1. 1 Whether the Jersey personal representatives may enter into a Memorandum of Understanding to pay a contribution to US estate taxes from B's estate
  2. 2 Whether the contribution to US taxes should be borne by B's movable estate or apportioned between movable and immovable estates
  3. 3 Whether the payment constitutes indirect enforcement of a foreign revenue claim and if an exception applies

Ratio Decidendi

Court approved the Representors entering into the Memorandum of Understanding and payment of US estate taxes from B's estate, as the claim by BBHTC would inevitably succeed in the US, and settlement avoids unnecessary litigation and costs; approval is limited to assets located in the country where the foreign tax claim would be enforced; no recourse against individual beneficiaries beyond the authorised contribution.

Court Disposition

application approved

Orders

  • Representors authorised to enter into Memorandum of Understanding with BBHTC and pay US estate taxes attributable to A's non-US assets from B's estate
  • Payment to be made from B's movable estate subject to express agreement of traced beneficiaries