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

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

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.

Citation
[2005] JLR 198
Parties
Applicant: Mackinnon; Respondent: Regent Trust Co.
Jurisdiction
Jersey
Judgment Date
19 May 2005
Procedural Posture
Civil / Judgment
Outcome
judgment delivered
Legal Topics
Trust Creation, Sham Trusts, Intention of Donor
Trust Law Trust Creation Sham Trusts Intention of Donor

Case Brief

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Parties

Mackinnon

Applicant

Regent Trust Co.

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 What constitutes a sham trust?
  2. 2 Is common intention to mislead third parties required for a trust to be a sham?

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.

Court Disposition

judgment delivered