It Was All A Mistake!

A recent judgment of the Royal Court of Jersey demonstrates its approach to an application to set aside a trust and certain gifts made under it on the grounds of mistake. It also provides some useful guidance on the approach to be taken to convening parties on trust related applications.

In The Matter of the R Remuneration Trust [2009] JRC164A, the applicant and settlor, acting on professional advice, had settled an English law discretionary trust with a Jersey trustee. The trust deed's terms excluded him and "connected" persons (as defined under the Income and Corporation Taxes Act 1988) from being beneficiaries. The settlor was subsequently advised that, contrary to his understanding at the time of the trust's establishment, loans could not be made to him by the trust as he envisaged they would be and, in addition, there was some uncertainty as to whether his wife and children could be added as beneficiaries of the trust upon his death.

The Settlor contended that, had he been aware of these facts, he would never have...