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.
Inheritance Tax Review
The Office of Tax Simplification ("OTS") published a consultation on inheritance tax ("IHT") in April 2018 and we are expecting their report this Autumn. What areas of IHT does the consultation look at and can practitioners expect wide-ranging reforms as a result?
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.
I can see clearly now…
In recent years, there has been a positive deluge of reporting initiatives affecting UK individuals, entities and structures with a UK connection. Some of these have come from the USA (so-called “FATCA”), some from the OECD (the Common Reporting Standard), others from the EU (as a result of the 4th Anti Money Laundering Directive) and others are simply ground-breaking initiatives by the UK government.
Beddoe Relief, charitable trusts and controlling legal costs: expectations on trustees
All trustees who find themselves considering litigation on behalf of a trust should take note of the judgment of the Royal Court of Jersey in F Trust JRC142. It provides helpful guidance in the following areas:
Resigned trustee wins court approval for reappointment - what the RBC Trustees (Guernsey) Limited judgement means for the trusts industry
The case, heard before the Royal Court in Jersey concerned a trust (the Trust), established under the law of England and Wales in 2001 by an Isle of Man incorporated company (the Company). RBC Trustees (Guernsey) Limited were appointed as the trustee (the Representor). Although the Trust was established upon standard discretionary terms, its primary function was that of an employee benefit trust (EBT), for the benefit of some 180 beneficiaries (employees, former employees of the Company and their family members).
Article 47 applications to vary a trust
The Jersey Royal Court's recent decision in the Y Trust and Z Trust provides welcome guidance in respect of article 47 applications to vary a trust. In particular, the Court considered the interplay between the wishes of a settlor and the Court's assessment of "benefit", a point which has not been considered before by the Court. The decision also examines article 47 applications alongside public policy considerations affecting a modern society.
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.
Future Statutory Changes to the Law of Trusts in Jersey - Infographic
Future Statutory Changes to the Law of Trusts in Jersey
Future statutory changes to the law of trusts in Jersey
The Chief Minister’s Department in Jersey has very recently published a Consultation Response and Policy Paper on proposed amendments to the Trusts (Jersey) Law 1984 (the TJL 1984). The contents are highly significant for anyone involved with the trusts industry in Jersey. This briefing note therefore sets out what we can expect in terms of amendments in the near future as well as highlighting other potential future areas of change.
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.
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