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.
