Representation of Vistra Fiduciary Limited re The Maria Trust [2022] JRC 164 (10 August 2022)

Representation of Vistra Fiduciary Limited re The Maria Trust [2022] JRC 164 (10 August 2022)

The trust instrument did not reflect the settlor's clear intention to be excluded from benefit, as evidenced by tax advice and affidavits. A genuine mistake occurred, full disclosure was made, and no other practical remedy exists. Rectification is granted to include the settlor as an Excluded Person, eliminating inheritance tax liability.

Citation
[2022] JRC 164
Parties
Applicant: Vistra Fiduciary Limited; Subject Trust: The Maria Trust; Settlor (deceased): E; Beneficiary: F; Interested Party: G; Protector: H; Notified Party: Her Majesty's Revenue and Customs
Jurisdiction
Jersey
Judgment Date
10 August 2022
Procedural Posture
Representation for Rectification of Trust Instrument / Judgment Following Hearing and Grant of Relief
Outcome
Application granted; trust instrument rectified.
Legal Topics
Rectification of Trust Instruments, Mistake in Trust Formation, Inheritance Tax Liability, Excluded Persons Definition
Trusts Equity Taxation Rectification of Trust Instruments Mistake in Trust Formation Inheritance Tax Liability Excluded Persons Definition

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Parties

Vistra Fiduciary Limited

Applicant

The Maria Trust

Subject Trust

E

Settlor (deceased)

F

Beneficiary

G

Interested Party

H

Protector

Her Majesty's Revenue and Customs

Notified Party

Procedural Posture

Representation for Rectification of Trust Instrument / Judgment Following Hearing and Grant of Relief

Legal Issues

  1. 1 Whether the trust instrument should be rectified to include the settlor as an Excluded Person
  2. 2 Whether a genuine mistake occurred so the instrument does not reflect the settlor's intention
  3. 3 Whether rectification is the appropriate remedy

Ratio Decidendi

The trust instrument did not reflect the settlor's clear intention to be excluded from benefit, as evidenced by tax advice and affidavits. A genuine mistake occurred, full disclosure was made, and no other practical remedy exists. Rectification is granted to include the settlor as an Excluded Person, eliminating inheritance tax liability.

Court Disposition

Application granted; trust instrument rectified.

Orders

  • Definition of 'Excluded Persons' in Clause 1 of the Trust rectified to include the settlor as an Excluded Person.