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Benefit—relieving beneficiaries of moral obligations in Jersey and England (In the matter of the May Trust)

Published on: 23 June 2021
Published by: LexisPSL
  • Benefit—relieving beneficiaries of moral obligations in Jersey and England (In the matter of the May Trust)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
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Article summary

Private Client analysis: The Royal Court of Jersey has authorised a trustee to advance £75,000,000 (approximately half the trust fund) to a beneficiary of a discretionary trust for the purpose of a donation to an English charitable foundation. This was proposed with the express intention that it would enable the beneficiary to elect to do what he (and the other adult beneficiaries) considered a broader social benefit by paying tax to HMRC at an effective rate of 25%. In doing so, the court departed from the English case law limiting the exercise to the extent of the moral obligation in question (ie the extent to which the beneficiary would otherwise have met the obligation out of his own assets) by determining that the obligation the obligation existed and was valid if recognised by the beneficiary. Written by Mathew Roper, barrister at 5 Stone Buildings. or take a trial to read the full analysis.

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