Representation of L re M Trust 10-Nov-2020 [2020] JRC 237 (10 November 2020)

Representation of L re M Trust 10-Nov-2020 [2020] JRC 237 (10 November 2020)

The Representor made the transfers under a mistaken belief that they would be tax neutral, resulting in significant and unnecessary inheritance tax liability. The mistake was sufficiently serious and causative, and it is just to set aside the transfers under Article 47E of the Trusts (Jersey) Law 1984.

Source-derived case information.

Citation
[2020] JRC 237
Parties
Applicant: Representor; Respondent: EFG Trust Company Limited; Respondent: Second Respondent; Respondent: Third Respondent; Respondent: Fourth Respondent; Interested Party: HMRC; Interested Party: Attorney General
Jurisdiction
Jersey
Judgment Date
10 November 2020
Procedural Posture
Trust Law Application / Final Judgment
Outcome
Transfers set aside for mistake under Article 47E of the Trusts (Jersey) Law 1984.
Legal Topics
Mistake in Trust Transfers, Inheritance Tax Liability, Setting Aside Transfers, Jurisdiction Under Jersey Law
Trusts Taxation Private International Law Mistake in Trust Transfers Inheritance Tax Liability Setting Aside Transfers Jurisdiction Under Jersey Law

Source-derived case record

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 4 Authorities cited 8 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Representor

Applicant

EFG Trust Company Limited

Respondent

Second Respondent

Respondent

Third Respondent

Respondent

Fourth Respondent

Respondent

HMRC

Interested Party

Attorney General

Interested Party

Procedural Posture

Trust Law Application / Final Judgment

Legal Issues

  1. 1 Whether the transfers into the Jersey trust 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 setting aside the transfers
  3. 3 Whether the applicant would not have made the transfers but for the mistake

Ratio Decidendi

The Representor made the transfers under a mistaken belief that they would be tax neutral, resulting in significant and unnecessary inheritance tax liability. The mistake was sufficiently serious and causative, and it is just to set aside the transfers under Article 47E of the Trusts (Jersey) Law 1984.

Court Disposition

Transfers set aside for mistake under Article 47E of the Trusts (Jersey) Law 1984.

Orders

  • Transfers into the trust are set aside with effect from the date of each transfer.
  • Assets transferred are held on bare trust for the Representor.