ARTICLE
10 November 2016

The Man v. The Courts

A
Appleby

Contributor

Appleby is one of the world’s leading offshore law firms, operating in 10 highly regarded and well-regulated locations. We provide comprehensive, expert advice and services across a number of key practice areas. We work with our clients to achieve practical solutions whether from a single location or across multiple jurisdictions.
A recent judgment highlighted an area of uncertainty in Manx trust law by questioning under what circumstances would the Manx courts be willing to interfere with a trustee's decision which has given rise to unintended consequences.
Isle of Man Wealth Management

The recent judgement of His Honour Deemster Doyle in the case of AB v CD highlighted an area of uncertainty in Manx trust law by questioning under what circumstances would the Manx courts be willing to interfere with a trustee's decision which has given rise to unintended consequences, including unintended tax consequences.

AB v CD

AB v CD concerned an application for an order to set aside a number of call options (Options) granted by the Defendant over the assets of eight discretionary trusts established under Manx law (Trusts). The order was applied for under the rule as established by the case of Hastings-Bass (the Hastings-Bass Rule) (also referred to as the proper deliberation rule) or, in the alternative, on the grounds of mistake. The Claimant was the settlor and primary beneficiary of the Trusts and the Defendant was the trustee.

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Article first published by ePrivateclient in October 2016

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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