Continue reading "Trusts: Following in the footsteps of Schmidt"
In the early 1990s, Mr Pugachev founded the JSC Mezhdunarodniy Promyshlenniy Bank (the bank) in Russia. It became one of Russia’s largest privately owned commercial banking groups. On 4 October 2010, the Russian Central Bank revoked its banking licence and appointed a ‘temporary administration’ and on 30 November 2010 it was declared insolvent by the Russian court and placed into temporary administration. The state corporation ‘Deposit Insurance Agency’ (the DIA) was appointed as liquidator. Mr Pugachev left Russia for London in 2011. The Russian liquidation of the bank was recognised by...
Continue reading "Trusts: Available assets"
The application concerned a trust, (the Children’s Trust) which, along with another trust (Trust 3), were discretionary trusts settled by the settlor for the benefit of his widow (R1), their children and their future issue. Trust 3 operated principally for the benefit of R1 and the Children’s Trust principally for the benefit of the children. The Children’s Trust had two protectors, P1, the settlor’s sister, and P2, the settlor’s business associate. The application was made by the trustees of the Children’s Trust (A1, A2 and A3 (the trustees)) to bless...
This decision concerned the construction of a trust deed dated 28 November 1944 (the deed) made between Eric Max Warburg on behalf of the Warburg family, Viscount Lee of Fareham on behalf of the Warburg Society, and the University of London (UOL). There arose questions about the scope of the deed, the ownership of property, the status of funding and the propriety of the administration by UOL under the deed. UOL brought a construction summons to determine these questions at the behest of HM Attorney General (the second defendant). The first defendant was Professor John Prag, of the Univer...
The claimants were trustees of a 1983 children’s trust, and a trust called the Lower Green Farm trust. The 1983 trust had been created by Anthony Samuel Edgar (the testator) in March 1983 for the benefit of his four children. The fund was divided in four equal shares, and each to be held for each child contingently upon attaining 25. The share was to be retained by the trustees on life interest trusts to pay the income to the child for life with a power to advance the capital of that share to him/her.
The Lower Green Farm trust had been made in the testator’s will of ...
Continue reading "Trusts: Too close for comfort"
The appellants appealed against decisions by the respondent that income of certain non-UK entities (including settlements established in the Isle of Man) could be attributed to them pursuant to s739 of the Income and Corporation Taxes Act 1988 (ICTA), which concerns the prevention of avoidance of income tax by individuals ordinarily resident in the UK by means of transfer of assets abroad.
The appellants owned three companies which carried on the trade of providing residential care to the elderly in the UK (the UK companies). The UK companies operated from four p...
Continue reading "Trusts: Anything to declare?"
This was an appeal from notices of determination by HMRC which held that dispositions in the will of Beryl Coulter (the deceased) did not fall within s23 of the Inheritance Tax Act 1984, and were therefore not exempt from inheritance tax. The deceased died on 9 October 2007 domiciled in Jersey. Her final will was dated 1 October 2004 and probate was granted in the probate division of the Royal Court of Jersey on 25 October 2007. The will made several legacies totalling £210,000 and the residue passed to her executors to be held on the terms of the Coulter Trust for the purpose of the pro...