Representation of The Grundy Trust [2020] JRC 071 (27 April 2020)

Representation of The Grundy Trust [2020] JRC 071 (27 April 2020)

The Former Trustee failed to take into account relevant considerations and took into account irrelevant considerations when excluding Mrs S. The court has discretion under Article 47H to set aside the exclusion and limit its effect so Mrs S is excluded only during Mr S's lifetime.

Citation
[2020] JRC 071
Parties
Applicant: The Current Trustee; Settlor/beneficiary: Mr S; Beneficiary: Mrs S; Respondent: The Former Trustee
Jurisdiction
Jersey
Judgment Date
27 April 2020
Procedural Posture
Trust Law Application / Judgment
Outcome
exclusion of Mrs S set aside and replaced with time-limited exclusion
Legal Topics
Exercise of Trustee Powers, Exclusion of Beneficiaries, Mistake, Relevant Considerations, Inheritance Tax
Trusts Private Client Tax Exercise of Trustee Powers Exclusion of Beneficiaries Mistake Relevant Considerations Inheritance Tax

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Parties

The Current Trustee

Applicant

Mr S

Settlor/beneficiary

Mrs S

Beneficiary

The Former Trustee

Respondent

Procedural Posture

Trust Law Application / Judgment

Legal Issues

  1. 1 Whether the exclusion of Mrs S as a beneficiary should be set aside under Article 47H of the Trusts (Jersey) Law 1984 due to failure to take relevant considerations into account
  2. 2 Whether the court can limit the effect of exclusion to Mrs S being excluded only during the lifetime of Mr S

Ratio Decidendi

The Former Trustee failed to take into account relevant considerations and took into account irrelevant considerations when excluding Mrs S. The court has discretion under Article 47H to set aside the exclusion and limit its effect so Mrs S is excluded only during Mr S's lifetime.

Court Disposition

exclusion of Mrs S set aside and replaced with time-limited exclusion

Orders

  • Exclusion of Mrs S as beneficiary is voidable and set aside; Mrs S is excluded only during Mr S's lifetime and will automatically cease to be excluded upon his death.
  • Trustee's costs to be paid from Trust assets.