Continue reading "Mistake: Fault lines"
The first appeal concerned two settlements, made with non-resident trustees, by Mr Futter. Considerable ‘stockpiled’ gains were rolled up while the trusts were non-resident and, in exercise of the powers conferred by the trusts, new resident trustees were appointed and capital was distributed to Mr Futter and his children in the mistaken belief that the ‘stockpiled’ gains, which would be attributed to them, would be absorbed by allowable losses that had been realised, so that no liability to capital gains tax would arise. In advising as to the effect of s87 of the Taxation a...
Continue reading "Equity: To the rescue"
The Shinorvic Trust (the trust) was established by VB (the settlor) on 19 July 1988. The trust was a discretionary trust governed by Jersey law. The original trustees of the trust were the Radcliffes Trustee Company SA (Radcliffe) and the original beneficiaries were the settlor’s sister MF and her children and remoter issue. Clause 2(3) of the trust deed conferred a power on the settlor to add beneficiaries. The power to add was exercisable by ‘instrument’ executed by the settlor. Clause 2(1)(f) of the trust deed defined an ‘instrument’ as ...
Continue reading "Trustees: Hastings-Bass overturned?"