Rogge v Rogge [2019] EWHC 1949 (Ch)

WTLR Issue: Winter 2019

1. MR OLAF ROGGE

2. MRS KRISTINA ROGGE

V

1. MRS SOPHIA KATERINA ROGGE

2. MR RALPH KEITH THEODORE ROGGE

3. MR STEFAN HENRY JULIUS ROGGE

Analysis

The first and second claimants had four children, three of whom were the defendants. The third defendant suffered a serious brain injury while playing polo and was left unable to walk unaided. The first and second claimants purchased two contiguous flats in London, one for themselves and the other for the third defendant. They also sought a house in the countryside which would serve both as a retirement home for themselves and as a place for their children and potential future grandchildren to visit, with an area designed to meet the needs of the third defendant. In February 2011 they identified the property they wished to purchase; Medstead Grange, Near Alton (property). On advice from Taylor Wessing, the first claimant set up a disabled person ‘s trust known as the Stefan Rogge Discretionary Trust on 31 March 2011 (trust), the trustees of whom were the first and second claimants and the first and second defendants (trustees). The class of beneficiaries included the third defendant (as principal beneficiary) and his children or remoter issue, the children and remoter issue of the first claimant and such other persons as may be added pursuant to a power contained in the trust. Excluded from benefit were both the first claimant (as settlor) and the second claimant (as his spouse). The first claimant then settled £4.1m (initial transfer) into the trust which the trustees used to purchase the property. Thereafter considerable additional sums were settled to enable construction and other works to be carried out to the property, including a total of £8.1m by the second claimant (additional transfers). When the property was fit for use, in order to prevent the gift with a reservation of benefit rules having an adverse impact, the first and second claimants took a lease from the trustees with effect from 1 September 2015 at an annual rent of £102,000. Subsequently, they issued a part 8 claim seeking an order by consent setting aside all transfers into the trust made prior to 27 November 2015 and a declaration that sums transferred to the trust after 27 November 2015 were held on resulting trust (consent order).

Counsel details

Counsel Oliver Conolly (Pump Court Tax Chambers, 16 Bedford Row, London, WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com) instructed by Pitmans LLP, subsequently BOB Pitmans LLP (50 Broadway, London SW1H 0BL, tel 034 5222 9222, e-mail enquiries@bdbpitmans.com) counsel for the claimants.


Edward Waldegrave (Pump Court Tax Chambers, 16 Bedford Row, London, WC1R 4EF, tel 020 7414 8080, e-mail clerks@pumptax.com) instructed by Pitmans LLP, subsequently BOB Pitmans LLP (50 Broadway, London SW1H 0BL, tel 034 5222 9222, e-mail enquiries@bdbpitmans.com), counsel for the 1st and 2nd defendants.