In re Onorati Settlement v [2013] 2 JLR 324 (17 September 2013)

In re Onorati Settlement v [2013] 2 JLR 324 (17 September 2013)

The trustee's appointment of the entire trust fund was set aside because the trustee failed to consider or forgot serious adverse tax consequences, and it was inadequate to rely, without sight, on advice allegedly obtained by beneficiaries.

Citation
[2013] 2 JLR 324
Parties
Applicant: Onorati Settlement
Jurisdiction
Jersey
Judgment Date
17 September 2013
Procedural Posture
Trusts / Judgment
Outcome
Appointment of entire trust fund set aside.
Legal Topics
Exercise of Trustee Discretion, Hastings Bass Principle, Fiduciary Duty, Tax Consequences of Trust Dispositions
Trusts Law Exercise of Trustee Discretion Hastings Bass Principle Fiduciary Duty Tax Consequences of Trust Dispositions

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Parties

Onorati Settlement

Applicant

Procedural Posture

Trusts / Judgment

Legal Issues

  1. 1 Whether the trustee's exercise of discretion should be set aside under the Hastings-Bass principle due to failure to consider relevant tax consequences

Ratio Decidendi

The trustee's appointment of the entire trust fund was set aside because the trustee failed to consider or forgot serious adverse tax consequences, and it was inadequate to rely, without sight, on advice allegedly obtained by beneficiaries.

Court Disposition

Appointment of entire trust fund set aside.

Orders

  • Appointment of entire trust fund to UK-resident beneficiaries is set aside.