Represenation of Pinnacle Trustees Limited re: the D and E Trusts - [2019] JRC 246 (19 December 2019)

The Trustee failed to take into account relevant considerations, including French tax implications, beneficiary interests, and legal advice, when terminating the Trusts and transferring assets into an unaccountable corporate structure. The exercise of powers was declared void under Article 47H.

Citation: [2019] JRC 246
Parties: Applicant: The Trustee (representor); Respondents: S, A, C, B, J, F, Q, R, H, G, K
Jurisdiction: Jersey
Judgment Date: 19 December 2019
Procedural Posture: Trust Application / Final Judgment
Outcome: Application granted; exercise of powers declared void.
Legal Topics: Voidable Exercise of Fiduciary Powers, Mistake in Trust Administration, Tax Avoidance, Corporate Restructuring, Beneficiary Rights

Trust Law Tax Law Company Law Voidable Exercise of Fiduciary Powers Mistake in Trust Administration Tax Avoidance Corporate Restructuring Beneficiary Rights

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Parties

The Trustee (representor)

Applicant

S, A, C, B, J, F, Q, R, H, G, K

Respondents

Procedural Posture

Trust Application / Final Judgment

Legal Issues

1 Whether the Trustee failed to take relevant considerations into account when terminating the Trusts and transferring assets into a circular corporate structure
2 Whether the exercise of fiduciary powers should be set aside under Article 47H of the Trusts (Jersey) Law 1984

Ratio Decidendi

Court Disposition

Application granted; exercise of powers declared void.

Orders

Transfers of assets and deed shortening trust periods declared void from 23 December 2011.
Financial adjustments authorised within the structure.