In re Strathmullen Trust [2014] 1 JLR 309 (04 March 2014)

In re Strathmullen Trust [2014] 1 JLR 309 (04 March 2014)

The court held that a voluntary disposition into trust can be set aside where the settlor acted under a mistaken belief, particularly where the mistake was induced by incorrect advice regarding tax liability, and the mistake was so serious that it would be unjust for the donee to retain the property.

Citation
[2014] 1 JLR 309
Parties
Applicant: Settlor/Donor; Respondent: Donee/Trustee
Jurisdiction
Jersey
Judgment Date
04 March 2014
Procedural Posture
Trust Application / Judgment
Outcome
disposition set aside
Legal Topics
Mistake in Trust Creation, Setting Aside Voluntary Disposition, Inheritance Tax Liability
Trust Law Mistake in Trust Creation Setting Aside Voluntary Disposition Inheritance Tax Liability

Case Brief

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Parties

Settlor/Donor

Applicant

Donee/Trustee

Respondent

Procedural Posture

Trust Application / Judgment

Legal Issues

  1. 1 Whether a voluntary transfer into trust can be set aside for mistake
  2. 2 Whether the mistake was sufficiently serious to render it unjust for the donee to retain the property

Ratio Decidendi

The court held that a voluntary disposition into trust can be set aside where the settlor acted under a mistaken belief, particularly where the mistake was induced by incorrect advice regarding tax liability, and the mistake was so serious that it would be unjust for the donee to retain the property.

Court Disposition

disposition set aside

Orders

  • Voluntary transfer into trust set aside due to mistake