Jersey Judgment

Mackinnon v Regent Trust Co. [2005] JLR 198 (19 May 2005)

Trust Law Trust Creation Sham Trusts Intention of Donor

Citation: [2005] JLR 198
Status: Judgment
Jurisdiction: Jersey
Posture: Civil / Judgment

More details

Posture: Civil / Judgment

On this page

Professional case brief

Research organized from the available case record

Source document

Holding and result

The essential feature of a sham trust is the common intention of the settlor and trustee to mislead third parties by giving a false impression that rights and obligations have been created in accordance with the deed; this intention is not the same as an intention to deceive.

Court disposition

judgment delivered

Material facts

Parties

Mackinnon

Applicant

Regent Trust Co.

Respondent

Procedural history

Posture

Civil / Judgment

Questions and positions

Legal issues

01
What constitutes a sham trust?
02
Is common intention to mislead third parties required for a trust to be a sham?

Party arguments

Applicant: The trust is a sham because the intention was not to create genuine rights and obligations as set out in the deed.
Respondent: A trust is not a sham unless there is a common intention between settlor and trustee to mislead third parties by giving a false impression that rights and obligations have been created in accordance with the deed.

Court’s reasoning

Legal principles

01
[2005] JLR 198

A sham trust requires a common intention of the settlor and trustee to mislead third parties by giving a false impression that rights and obligations have been created in accordance with the deed.

Ratio, limits and disposition

Ratio decidendi

The essential feature of a sham trust is the common intention of the settlor and trustee to mislead third parties by giving a false impression that rights and obligations have been created in accordance with the deed; this intention is not the same as an intention to deceive.

Obiter and limits

Intention to give a false impression is not to be equated with an intention to deceive.

Court disposition

judgment delivered

Source and reliance status

Official court record

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Source document

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Judgment text

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Source document

Court record

Judgment

[2005] JLR 198

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BAILII >> Databases >> Jersey Law Reports >> Mackinnon v Regent Trust Co. [2005] JLR 198 (19 May 2005) URL: https://www.bailii.org/je/cases/JLR/2005/JLR050198.html Cite as: [2005] JLR 198 [ New search ] [ Help ] Mackinnon v Regent Trust Co. 2005 JLR 198 (19 May 2005) Trusts-creation-intention of donor-sham-essential feature is common intention of settlor and trustee to mislead third parties by giving false impression that rights and obligations actually created in accordance with deed-intention to give false impression not to be equated with intention to deceive 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: 2005 JLR 198 BAILII: Copyright Policy | Disclaimers | Privacy Policy | Feedback | Donate to BAILII URL: https://www.bailii.org/je/cases/JLR/2005/JLR050198.html

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