Seaton -v- Morgan [2007] JRC 206 (08 November 2007)

Seaton -v- Morgan [2007] JRC 206 (08 November 2007)

The Trustee failed to consider the inheritance tax consequences of the Novation and Assignment Agreements, which were relevant and material. The Trustee would not have executed the agreements had it known the true tax position. The Hastings-Bass principle applies, and the agreements are set aside and declared of no...

Source-derived case information.

Citation
[2007] JRC 206
Parties
Applicant: Seaton Trustees Limited; Settlor: Benedict John Morgan; Trust: Winton Investment Trust
Jurisdiction
Jersey
Judgment Date
08 November 2007
Procedural Posture
Application / Judgment
Outcome
Novation and Assignment Agreements set aside and declared of no effect.
Legal Topics
Hastings Bass Principle, Inheritance Tax, Trustee Discretion, Mistake, Setting Aside Agreements
Trusts Taxation Conflict of Laws Hastings Bass Principle Inheritance Tax Trustee Discretion Mistake Setting Aside Agreements

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 3 Authorities cited 10 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Seaton Trustees Limited

Applicant

Benedict John Morgan

Settlor

Winton Investment Trust

Trust

Procedural Posture

Application / Judgment

Legal Issues

  1. 1 Whether the Novation and Assignment Agreements should be set aside under the Hastings-Bass principle
  2. 2 Whether the Trustee acted under a discretion and failed to consider relevant tax consequences
  3. 3 Whether the principle applies to administrative as well as dispositive discretions

Ratio Decidendi

The Trustee failed to consider the inheritance tax consequences of the Novation and Assignment Agreements, which were relevant and material. The Trustee would not have executed the agreements had it known the true tax position. The Hastings-Bass principle applies, and the agreements are set aside and declared of no effect. Funds received are to be held as bare trustee for Mr Morgan.

Court Disposition

Novation and Assignment Agreements set aside and declared of no effect.

Orders

  • Novation and Assignment Agreements are set aside and declared of no effect.
  • Funds received by the Trustee under the Novation and Assignment Agreements, any investments made with the proceeds, any income arising thereon, and any future funds received under the Post Novation and Assignment Agreements are to be held by the Trustee as bare trustee for Mr Morgan.