In re Howe No. 1 Trust v [2007] JLR 660 (24 December 2007)

In re Howe No. 1 Trust v [2007] JLR 660 (24 December 2007)

A trustee's investment decision may be invalidated under the Hastings-Bass principle if it would not have been made but for the trustee's failure to consider relevant matters, such as changes in tax law, regardless of fault or breach of duty.

Citation
[2007] JLR 660
Parties
Applicant: Howe No. 1 Trust
Jurisdiction
Jersey
Judgment Date
24 December 2007
Procedural Posture
Trust Application / Judgment
Outcome
Application granted
Legal Topics
Trustee Powers, Exercise of Discretion, Hastings Bass Principle, Capital Gains Tax
Trusts Trustee Powers Exercise of Discretion Hastings Bass Principle Capital Gains Tax

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Parties

Howe No. 1 Trust

Applicant

Procedural Posture

Trust Application / Judgment

Legal Issues

  1. 1 Whether a trustee's investment decision can be invalidated under the Hastings-Bass principle if made in ignorance of relevant matters or consideration of irrelevant matters, such as changes to UK capital gains tax law
  2. 2 Whether fault or breach of duty by the trustee or adviser is required for the application of the Hastings-Bass principle

Ratio Decidendi

A trustee's investment decision may be invalidated under the Hastings-Bass principle if it would not have been made but for the trustee's failure to consider relevant matters, such as changes in tax law, regardless of fault or breach of duty.

Court Disposition

Application granted

Orders

  • Trustee's investment decision set aside under the Hastings-Bass principle