Representation of AIB JERSEY TRUST Ltd [2010] JRC 012 (21 January 2010)

Representation of AIB JERSEY TRUST Ltd [2010] JRC 012 (21 January 2010)

The trust deed as executed failed for lack of certainty of objects, rendering the trust void ab initio. However, rectification is granted to insert the intended charity (RNLI) as default beneficiary, validating the trust from its inception.

Citation
[2010] JRC 012
Parties
Applicant: Trustee of the Exeter Settlement; Supporting Parties: Adult beneficiaries; Notified Party: HM Revenue and Customs (UK)
Jurisdiction
Jersey
Judgment Date
21 January 2010
Procedural Posture
Application for Declaration/rectification / Judgment
Outcome
rectification granted
Legal Topics
Validity of Discretionary Trust, Rectification of Trust Deed, Certainty of Objects
Trust Law Validity of Discretionary Trust Rectification of Trust Deed Certainty of Objects

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Parties

Trustee of the Exeter Settlement

Applicant

Adult beneficiaries

Supporting Parties

HM Revenue and Customs (UK)

Notified Party

Procedural Posture

Application for Declaration/rectification / Judgment

Legal Issues

  1. 1 Whether the discretionary trust was validly constituted given the omission of a default beneficiary
  2. 2 Whether rectification of the trust deed is appropriate

Ratio Decidendi

The trust deed as executed failed for lack of certainty of objects, rendering the trust void ab initio. However, rectification is granted to insert the intended charity (RNLI) as default beneficiary, validating the trust from its inception.

Court Disposition

rectification granted

Orders

  • The trust deed is rectified by inserting 'The Royal National Lifeboat Institution (a charity registered in England and Wales with registered charity number 209603)' in schedule 7, effective from 10th June, 1983.