In the matter of the Sanne Trust Company Limited [2009] JRC 025B (16 February 2009)

In the matter of the Sanne Trust Company Limited [2009] JRC 025B (16 February 2009)

A genuine mistake was made in drafting the trust deed as a discretionary trust instead of an interest in possession trust; full and frank disclosure was made; no other practical remedy existed; rectification was granted to substitute the correct trust form with retrospective effect.

Citation
[2009] JRC 025B
Parties
Applicant: Sanne Trust Company Limited; Settlor: Mr C; Guardian Ad Litem: Mr Goulborn
Jurisdiction
Jersey
Judgment Date
16 February 2009
Procedural Posture
Application for Rectification of Trust / Judgment
Outcome
application granted
Legal Topics
Rectification of Trust, Mistake in Trust Drafting, Interest in Possession Trust, Discretionary Trust, Confidentiality of Beneficiaries
Trust Law Private Client Tax Law Rectification of Trust Mistake in Trust Drafting Interest in Possession Trust Discretionary Trust Confidentiality of Beneficiaries

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Parties

Sanne Trust Company Limited

Applicant

Mr C

Settlor

Mr Goulborn

Guardian Ad Litem

Procedural Posture

Application for Rectification of Trust / Judgment

Legal Issues

  1. 1 Whether the C family settlement should be rectified due to mistake in drafting
  2. 2 Whether the trust should have been established as an interest in possession trust instead of a discretionary trust
  3. 3 Whether the requirements for rectification are satisfied

Ratio Decidendi

A genuine mistake was made in drafting the trust deed as a discretionary trust instead of an interest in possession trust; full and frank disclosure was made; no other practical remedy existed; rectification was granted to substitute the correct trust form with retrospective effect.

Court Disposition

application granted

Orders

  • Rectification of the C family settlement to create an interest in possession trust with retrospective effect from 5th July, 1999