In the first four months of 2017, the Royal Court has considered a number of interesting cases relating to Jersey trusts. In this edition of the Courterly Review, we look at judgments that have raised issues relating to the principles applied in applications to bless a momentous decision made by a trustee in the context of ongoing divorce proceedings, rectification and the law of mistake.
Trusts and Divorce: Court blessing of trustee's momentous decision
In In the matter of the D Settlement  JRC 061, the Court gave its approval to a decision taken by the trustee (the "Trustee") of a Jersey law trust ("the Trust") which was intended to enable one of the beneficiaries (being the settlor) of the Trust to give effect to a decision of the Family Division of the High Court in London.
In In the matter of the H and J Trusts  JRC 237, the Court had before it two applications to rectify two separate trusts created by declarations of trust which were in identical terms save for the beneficiaries. The trustee was the same for both trusts and both trusts were established to settle shares in the same company. Both were discretionary trusts originally established under the law of Gibraltar. The governing law of the Trusts was changed to the law of Jersey in April 2016. It was on the change in the proper law that the issue which trustee and beneficiaries wished to be rectified came to light.
Setting aside transfers into trust on the basis of mistake
In In the matter of the A Family Trust  JRC 014, the Royal Court set aside certain transfers of UK situs assets made by the settlors into the A Family Trust (the "Trust"). The Trust was declared by the trustee in April 2015 and was a discretionary Jersey law trust. The beneficiaries were two of the three adult children of the settlors and their children and remoter issue. The settlors were excluded from benefit.
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