In the matter of the D Trust [2019] JRC 055 (02 April 2019)

In the matter of the D Trust [2019] JRC 055 (02 April 2019)

The transfers from the UK bank account were made by mistake, as the Representor was unaware of the adverse tax consequences. The mistake was serious and causative. The transfers are set aside under Article 47E of the Trusts (Jersey) Law 1984 and are void from the time they were made.

Citation
[2019] JRC 055
Parties
Applicant: Representor; Trustee: EFG Trust Company Limited; Advocate for Minor Issue and Unborn Beneficiaries: Advocate Cushing; Interested Party: Her Majesty's Revenue and Customs; Interested Party: Her Majesty's Attorney General; Respondents: Co-settlors
Jurisdiction
Jersey
Judgment Date
02 April 2019
Procedural Posture
Trust Law Representation / Final Judgment
Outcome
application granted
Legal Topics
Mistake in Trust Transfers, Setting Aside Trust Transactions, Tax Liability Arising From Trust Transfers
Trusts Taxation Mistake in Trust Transfers Setting Aside Trust Transactions Tax Liability Arising From Trust Transfers

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Parties

Representor

Applicant

EFG Trust Company Limited

Trustee

Advocate Cushing

Advocate for Minor Issue and Unborn Beneficiaries

Her Majesty's Revenue and Customs

Interested Party

Her Majesty's Attorney General

Interested Party

Co-settlors

Respondents

Procedural Posture

Trust Law Representation / Final Judgment

Legal Issues

  1. 1 Whether transfers into trust from a UK bank account should be set aside for mistake under Article 47E of the Trusts (Jersey) Law 1984
  2. 2 Whether the mistake was sufficiently serious to justify relief
  3. 3 Consequences of setting aside the transfers

Ratio Decidendi

The transfers from the UK bank account were made by mistake, as the Representor was unaware of the adverse tax consequences. The mistake was serious and causative. The transfers are set aside under Article 47E of the Trusts (Jersey) Law 1984 and are void from the time they were made.

Court Disposition

application granted

Orders

  • Relevant UK Source Transfers into the Trust are set aside and declared void from the time they were made
  • The sums transferred are held on bare trust by the Trustee for the Representor