- In the Matter of the M Settlement—Royal Court of Jersey declines to grant application to correct trustee's mistake and permit partial rescission
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Private Client analysis: The trustee of the M Settlement, a Jersey law trust, applied to the court pursuant to Article 47G of the Trusts (Jersey) Law 1984 to set aside part of a transaction entered into by the former trustee (the Former Trustee) due to a mistake, on the basis that it had failed to appreciate that there would be a resulting inheritance tax (IHT) charge several years later. In this case, it was argued that the court should set aside only those parts of the transaction which had given rise to the adverse IHT charge, namely a share sale agreement and a loan back agreement, while leaving intact the transfer of ownership of the shares to a wholly owned company as a gift. Written by Sam Williams, Group partner, Fritha Ford, of counsel, and Kirsten Bailey, associate, at Collas Crill Jersey.
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