Representation of Equiom (CI) Limited re The Capital Trust (Royal Court : Hearing (Civil)) [2025] JRC 020 (21 January 2025)

Representation of Equiom (CI) Limited re The Capital Trust (Royal Court : Hearing (Civil)) [2025] JRC 020 (21 January 2025)

The 2009 Appointment was made under a mistake as to its tax consequences, resulting in immediate and ongoing inheritance tax liabilities far greater than intended. The mistake was sufficiently serious and it is just to set aside the deed under Article 47G.

Citation
[2025] JRC 020
Parties
Applicant: Representor; Former Trustee: Key Trust Company Limited; Former Trustee: Vivat Trustees Limited; Beneficiary: Widow; Beneficiary: Husband; Beneficiaries: Children; Beneficiaries: Grandchildren
Jurisdiction
Jersey
Judgment Date
21 January 2025
Procedural Posture
Trust Application / Final Judgment
Outcome
application granted
Legal Topics
Mistake in Trust Administration, Inheritance Tax, Setting Aside Trust Appointments
Trusts Taxation Private Client Mistake in Trust Administration Inheritance Tax Setting Aside Trust Appointments

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Parties

Representor

Applicant

Key Trust Company Limited

Former Trustee

Vivat Trustees Limited

Former Trustee

Widow

Beneficiary

Husband

Beneficiary

Children

Beneficiaries

Grandchildren

Beneficiaries

Procedural Posture

Trust Application / Final Judgment

Legal Issues

  1. 1 Whether the 2009 Appointment is voidable for mistake under Article 47G of the Trusts (Jersey) Law 1984
  2. 2 Whether the mistake was sufficiently serious to justify setting aside the deed

Ratio Decidendi

The 2009 Appointment was made under a mistake as to its tax consequences, resulting in immediate and ongoing inheritance tax liabilities far greater than intended. The mistake was sufficiently serious and it is just to set aside the deed under Article 47G.

Court Disposition

application granted

Orders

  • The 2009 Appointment is set aside and of no effect from the time of its execution.
  • The terms of the Trust remain as set out in Clause 2(a) of the original trust deed.