Articles & Video
It is trite law that a trust has no legal personality - it is the trustees who are personally liable for the debts (and other liabilities) of a trust, subject to a right of indemnity from the trust fund where such liabilities are properly incurred.
Litigation and Privilege: when is there really a dispute?
The cloak of privilege can be an invaluable tool in any legal matter providing the security of knowing that communications or advice will not at some later date become disclosable to an adverse party.
Trust Law Amendments
The Trusts (Amendment No. 7) (Jersey) Law 2018 (the Amendment Law), which came into force on 8 June 2018, refines and further enhances Jersey's trusts legislation, the Trusts (Jersey) Law 1984 (the Law). Here, Carey Olsen senior associate Nichola Aldridge summarises the key provisions of the Amendment Law.
The Court of Protection in Re HH  has returned to the vexed question of the court’s power to retrospectively approve payments made by attorneys who have exceeded the very limited powers of gifting prescribed by the Mental Capacity Act 2005 (MCA 2005).
Hastings Bass in the Channel Islands
The rule (or principle, as it is often referred to) is taken from the decision in Re Hastings Bass in the English Court of Appeal in 1975.
Requirement To Correct Tax Due On Offshore Assets
As HMRC continue their mission to stamp out offshore tax evasion new legislation could result in many inadvertent casualties. The Requirement to Correct (RTC) legislation imposes significant fixed penalties and sanctions if underpaid tax is discovered as being owed in relation to offshore assets.
Setting aside subsequent transfers to trusts - Jersey's statutory law of mistake in operation
The enactment of the Trust (Amendment No 6) (Jersey) Law 2013 (Amendment 6), saw Jersey introduce a statutory basis for relief to be granted for mistake in the form of Article 47E of the Trusts (Jersey) Law 1984 (the Law). There have been a number of decisions of the Royal Court in this area since then, although until the decision in In the Matter of the D, E and F Trusts those cases were decided on the basis of the pre-existing law.
Variations of Jersey trusts: relevance of settlors’ views and public policy
The Royal Court of Jersey has recently approved (on behalf of minor, unborn and unascertained beneficiaries) variations of two trusts established by a late Settlor whereby the beneficial class of each trust was to be widened beyond the parameters that the Settlor had set out during his lifetime.
In considering the application, the Court made observations about the relevance of the Settlor’s firmly held views to the Court’s discretion to approve the variation, and also addressed potential issues of public policy.
Probate in international litigation
Several recent decisions have highlighted some of the issues that can arise where those claiming through a deceased person are parties to proceedings in a place other than the place where the deceased was domiciled.
Beddoe Relief: Case study from the Grand Court of the Cayman Islands
In the case of X (as Trustee of the A Trust) v Y (as Beneficiary of the A Trust) (unreported) 15 March 2017, Smellie CJ, the Grand Court of the Cayman Islands granted Beddoe relief to a trustee in circumstances where a successful third party claim would have exhausted trust assets. Partner Rachael Reynolds and Associate Shaun Maloney assess the decision's potential ramifications
The Difficulties (but not impossibility) of Challenging Wills Prepared by Solicitors
In recent years we have noticed an increase in claims being brought which challenge the validity of a will. The reasons for this increase have been previously commented on by many, but the general feeling is that an increasing elderly population, an increase in the diagnosis of medical conditions such as dementia, and even perhaps a growing sense of entitlement by hopeful beneficiaries are all contributing factors.
Disclosure to Successor Trustees
The Investec litigation in Guernsey has done much to enrich our trust law, not to mention our trust lawyers. Numerous points have come before the Royal Court and the Court of Appeal and some are slowly trundling towards the Privy Council.
Tackling The Hidden Economy – The Next Big Thing?
With all the recent focus on measures to combat tax avoidance and offshore evasion, it’s easy to overlook those that take a more basic approach of not paying their taxes by either failing to register with HMRC (‘ghosts’) or declaring only part of their activities (‘moonlighters’). Together these make up the hidden economy.
Trustees Warned Over Tax Return Requests
RSM has become aware of a number of incidences in which HMRC’s gateway system shows a tax return has been issued to a trust, even if no corresponding notice to complete a tax return has been issued to trustees. Trustees shouldn’t however assume that a tax return issued through the gateway is an error as failure to complete a return could incur a penalty. You have been warned!
IHT & Non-UK Charities: Was the residue of an estate ‘given to charities’ for IHT purposes?
The Court of Appeal has confirmed that a legacy to non-UK charities did not qualify for the inheritance tax exemption in IHTA 1984 s.23 as it was not ‘given to charities’. The question of whether this interpretation complies with EU law was deferred to a later hearing
An Opportunity To Reform The UK Tax System?
Recent statements by the Chancellor of the Exchequer Philip Hammond suggest a willingness to overturn some of the piecemeal changes put forward by his predecessor and to take a broader view of the UK fiscal system. So what can we expect at the Autumn Statement? We suggest five areas that the Chancellor may wish to tackle.
Will The Latest HMRC Nudge Initiative Help Plug The Tax Gap?
In an effort to maximise recoveries, HMRC is carrying out a trial to find out if sending text message alerts to taxpayers will increase the chances of them paying their taxes on time. So will this help plug the £34bn tax gap?
How Should HMRC Be Organised?
To some people that’s an easy question. And the answer is equally easy: “better than it has been during the last few years”. With the cultural groundswell running against HMRC, we were pleased to hear news of a proposed internal reorganisation by the UK’s tax authority.
Strengthening Tax Avoidance Sanctions & Deterrents
At a stakeholder meeting held on 21 September, HMRC confirmed that the policy intention behind its 17 August 2016 consultation on strengthening tax avoidance sanctions and deterrents is to change future behaviour.
Consultation - Tackling Offshore Tax Evasion: A Requirement To Correct
HMRC has issued a consultation on incentivising those with any UK tax irregularities in respect of offshore interests to correct those irregularities fully by 30 September 2018, after when, tougher sanctions will apply. The legislation will be introduced in Finance Bill 2017.