1999/38 - Representation of Le Sueur and Ors [1999] UR 38 (23 February 1999)

1999/38 - Representation of Le Sueur and Ors [1999] UR 38 (23 February 1999)

The trust deed did not reflect the true intention of the settlor and advisers, as evidenced by correspondence and affidavits, and the absence of the power to pay or apply capital to beneficiaries during the settlor's lifetime was a mistake. The Court has discretion to rectify the deed to reflect the parties' true intention, and there is no rule against rectification where the effect is to save tax. The evidence meets the high standard required for rectification.

Citation
[1999] UR 38
Parties
Representor/trustee: Terence Augustine Le Sueur; Representor/trustee: Raleigh Nominees Limited; Settlor/beneficiary: Joseph Eagle; Beneficiary: James Mark Joseph Eagle; Beneficiary: Mrs Eagle; Advocate for Minor and Unborn Beneficiaries: Advocate Taylor
Jurisdiction
Jersey
Judgment Date
23 February 1999
Procedural Posture
Representation/application for Rectification of Trust Deed / Judgment on Application for Rectification
Outcome
application granted
Legal Topics
Rectification of Trust Deed, Mistake in Trust Drafting, Tax Avoidance, Powers of Trustees
Trusts Equity Rectification of Trust Deed Mistake in Trust Drafting Tax Avoidance Powers of Trustees

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Parties

Terence Augustine Le Sueur

Representor/trustee

Raleigh Nominees Limited

Representor/trustee

Joseph Eagle

Settlor/beneficiary

James Mark Joseph Eagle

Beneficiary

Mrs Eagle

Beneficiary

Advocate Taylor

Advocate for Minor and Unborn Beneficiaries

Procedural Posture

Representation/application for Rectification of Trust Deed / Judgment on Application for Rectification

Legal Issues

  1. 1 Whether the trust deed can be rectified to include a power for trustees to pay or apply capital to beneficiaries during the settlor's lifetime
  2. 2 Whether the absence of such a power was a mistake contrary to the parties' intentions

Ratio Decidendi

The trust deed did not reflect the true intention of the settlor and advisers, as evidenced by correspondence and affidavits, and the absence of the power to pay or apply capital to beneficiaries during the settlor's lifetime was a mistake. The Court has discretion to rectify the deed to reflect the parties' true intention, and there is no rule against rectification where the effect is to save tax. The evidence meets the high standard required for rectification.

Court Disposition

application granted

Orders

  • Rectification of the Joseph Eagle 1989 Settlement to include a power for trustees to pay, transfer, apply, or deal with capital for the benefit of any beneficiaries during the trust period, retrospectively.