In re A Trust v [2009] JLR 447 (16 December 2009)
- Citation
- [2009] JLR 447
- Status
- Judgment
- Jurisdiction
- Jersey
- Posture
- Trust Application / Judgment
More details
- Posture
- Trust Application / Judgment
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
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.
02
Material facts
Parties
A Trust
ApplicantUnknown (Donee/Respondent)
Respondent03
Procedural history
Posture
Trust Application / Judgment
04
Questions and positions
Legal issues
- 01
Whether a voluntary disposition into trust can be set aside for mistake of fact or law by the settlor/donor
- 02
Whether the mistake was so serious that it would be unjust for the donee to retain the property
- 03
Whether the court is satisfied that the settlor/donor would not have entered the transaction but for the mistake
- 04
Whether the mistaken belief related to avoidance of substantial UK inheritance tax
Party arguments
- Applicant
- The settlor/donor made a voluntary disposition into trust under a mistaken belief, and would not have entered the transaction but for that mistake, which if not set aside would result in substantial UK inheritance tax liability.
- Respondent
- The disposition should not be set aside as the mistake does not meet the threshold of seriousness required, and the transaction should stand.
05
Court’s reasoning
Legal principles
- 01
Jersey trust law, as summarized in this judgment
A voluntary disposition into trust may be set aside for mistake of fact or law by the settlor/donor if the mistake is so serious that it would be unjust for the donee to retain the property.
- 02
Jersey trust law, as summarized in this judgment
The court must be satisfied that the settlor/donor would not have entered into the transaction but for the mistake.
- 03
Jersey trust law, as summarized in this judgment
Such a disposition is voidable, not void ab initio.
06
Ratio, limits and disposition
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.
Obiter and limits
- A mistaken belief regarding substantial UK inheritance tax liability may be sufficient to justify setting aside a trust disposition.
Court disposition
Disposition into trust set aside for mistake.
- The voluntary disposition into trust is set aside.
Source and reliance status
Official court record
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Court record
Judgment
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BAILII >> Databases >> Jersey Law Reports >> In re A Trust v [2009] JLR 447 (16 December 2009) URL: https://www.bailii.org/je/cases/JLR/2009/JLR090447.html Cite as: [2009] JLR 447 [ New search ] [ Help ] In re A Trust v 2009 JLR 447 (16 December 2009) Trusts-creation-intention of donor-mistake-voluntary disposition into trust (forming entire trust fund) set aside for mistake of fact or law by settlor/donor if so serious that unjust for donee to retain property-court to be satisfied settlor/donor would not have entered transaction "but for" mistake-disposition set aside if mistaken belief would avoid substantial UK inheritance tax-transaction voidable not void ab initio The document you wish to view is available to registered users or can be purchased as a PDF. To purchase this document in PDF format or alternatively to Register to purchase membership go to the Jersey Law website via this link: 2009 JLR 447 BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/je/cases/JLR/2009/JLR090447.html
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