Representation of A re: G Trust [2018] JRC 159 (04 September 2018)

Representation of A re: G Trust [2018] JRC 159 (04 September 2018)

The trust was created and funded under a mistake as to UK tax consequences, which was serious and would not have occurred but for the mistake; it is unjust for the trustee to retain the property, so the trust is invalid under Article 11.

Citation
[2018] JRC 159
Parties
Applicant: Representor (Greek entrepreneur); Trustee: EFG Trust Company Limited; Beneficiaries: First to Fourth Respondents (children of representor); Protector: Fifth Respondent (protector)
Jurisdiction
Jersey
Judgment Date
04 September 2018
Procedural Posture
Application to Set Aside Trust/dispositions / Final Judgment
Outcome
Trust declared invalid for mistake; trust fund held on bare trust for representor; trustee relieved from personal liability for certain breaches.
Legal Topics
Mistake in Trust Formation, Inheritance Tax Liability, Setting Aside Trusts, Bare Trust, Trustee Liability
Trust Law Tax Law Mistake in Trust Formation Inheritance Tax Liability Setting Aside Trusts Bare Trust Trustee Liability

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 8 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Representor (Greek entrepreneur)

Applicant

EFG Trust Company Limited

Trustee

First to Fourth Respondents (children of representor)

Beneficiaries

Fifth Respondent (protector)

Protector

Procedural Posture

Application to Set Aside Trust/dispositions / Final Judgment

Legal Issues

  1. 1 Whether the G Trust or dispositions into it should be set aside for mistake under Jersey law
  2. 2 Whether the mistake as to UK tax consequences justifies invalidating the trust

Ratio Decidendi

The trust was created and funded under a mistake as to UK tax consequences, which was serious and would not have occurred but for the mistake; it is unjust for the trustee to retain the property, so the trust is invalid under Article 11.

Court Disposition

Trust declared invalid for mistake; trust fund held on bare trust for representor; trustee relieved from personal liability for certain breaches.

Orders

  • Declaration that the G Trust is invalid for mistake under Article 11(2)(b)(i) of the Trusts Law.
  • Trust fund to be held by EFG Trustee on trust for the representor absolutely.