Rep of G and in the matter of the D Trust E Trust and the F Trust [2016] JRC 166C (19 September 2016)

Rep of G and in the matter of the D Trust E Trust and the F Trust [2016] JRC 166C (19 September 2016)

The transfers were set aside because the Representor made them under a fundamental mistake as to their US estate tax consequences, which was sufficiently serious to justify relief under Article 47E of the Trusts (Jersey) Law 1984. Jersey law governs the validity of the transfers, and all parties supported the application.

Citation
[2016] JRC 166C
Parties
Applicant: Representor; Respondents: Trustees of the M Trust, N Trust, and F Trust
Jurisdiction
Jersey
Judgment Date
19 September 2016
Procedural Posture
Application to Set Aside Transfers to Trust / Judgment on Application
Outcome
application granted
Legal Topics
Setting Aside Trust Transfers for Mistake, Conflict of Laws in Trust Transfers, Tax Consequences of Trust Structures
Trust Law Private International Law Tax Law Setting Aside Trust Transfers for Mistake Conflict of Laws in Trust Transfers Tax Consequences of Trust Structures

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Parties

Representor

Applicant

Trustees of the M Trust, N Trust, and F Trust

Respondents

Procedural Posture

Application to Set Aside Transfers to Trust / Judgment on Application

Legal Issues

  1. 1 Whether the transfers of shares to the amended trusts should be set aside on the grounds of mistake under Article 47E of the Trusts (Jersey) Law 1984
  2. 2 Whether Jersey law or foreign law governs the validity of the transfers
  3. 3 Whether the mistake was sufficiently serious to justify relief

Ratio Decidendi

The transfers were set aside because the Representor made them under a fundamental mistake as to their US estate tax consequences, which was sufficiently serious to justify relief under Article 47E of the Trusts (Jersey) Law 1984. Jersey law governs the validity of the transfers, and all parties supported the application.

Court Disposition

application granted

Orders

  • The transfers of shares in A and B to the trusts are set aside on the grounds of mistake pursuant to Article 47E of the Trusts (Jersey) Law 1984.
  • It is declared that the shares in A and B have been held on bare trust by the trustees on behalf of the Representor at all times.