Trusts
(Amendment No. 6) (Jersey) Law 2013
A LAW to amend further the Trusts
(Jersey) Law 1984
Adopted
by the States 16th July 2013
Sanctioned by
Order of Her Majesty in Council 9th October 2013
Registered by the Royal Court 18th October 2013
THE STATES, subject to the sanction of Her Most Excellent Majesty in Council, have
adopted the following Law –
1 Trusts (Jersey) Law 1984 amended
After Article 47A of the Trusts (Jersey)
Law 1984[1], there are inserted the
following Articles –
“47B Articles 47D
to 47J: Interpretation
(1) In Articles 47D to 47J –
(a) references to a transfer or other disposition of property to a
trust, do not include a testamentary disposition;
(b) ‘power’ includes a discretion as to the way in which an
obligation is performed.
(2) In Articles 47E and 47G, ‘mistake’ includes (but is not
limited to) –
(i) the
effect of,
(ii) any
consequences of, or
(iii) any
of the advantages to be gained by,
a transfer or other
disposition of property to a trust, or the exercise of a power over or in
relation to a trust or trust property;
(b) a mistake as to a fact existing either before or at the time of,
a transfer or other disposition of property to a trust, or the exercise of a
power over or in relation to a trust or trust property; or
(c) a mistake of law including a law of a foreign jurisdiction.
47C Determination
of ‘mistake’
The doctrine of ‘erreur’ in
Jersey customary law as applied to the law of contract, shall not apply to any
question concerning the meaning of ‘mistake’ for the purposes of determining an
application under Article 47E or 47G.
47D Application of powers under Articles 47E to 47I
Articles 47E to 47I
apply in relation to the transfer or other disposition of property to a trust,
or the exercise of any power over or in relation to a trust or trust property
that occurs either before or after the coming into force of the Trusts (Amendment
No. 6) (Jersey) Law 2013[2].
47E Power to set aside a transfer or disposition of property to a
trust due to mistake
(1) In this paragraph, ‘person exercising a power’ means a person
who exercises a power to transfer or make other disposition of property to a
trust on behalf of a settlor.
(2) The court may on the application of any person specified in Article 47I(1),
and in the circumstances set out in paragraph (3), declare that a transfer
or other disposition of property to a trust –
(a) by a settlor acting in person (whether alone or with any other
settlor); or
(b) through a person exercising a power,
is voidable and –
(i) has
such effect as the court may determine, or
(ii) is
of no effect from the time of its exercise.
(3) The circumstances are where the settlor or person exercising a
power –
(a) made a mistake in relation to the transfer or other disposition
of property to a trust; and
(b) would not have made that transfer or other disposition but for
that mistake, and
the mistake is of so serious
a character as to render it just for the court to make a declaration under this
Article.
47F Power to set aside a transfer or disposition of property to a
trust exercised by fiduciary power
(1) In this paragraph, ‘person exercising a power’ means a person
who exercises a power to transfer or make other disposition of property to a
trust on behalf of a settlor and who owes a fiduciary duty to the settlor in
relation to the exercise of his or her power.
(2) The court may on the application of any person specified in Article 47I(1),
and in the circumstances set out in paragraph (3), declare that a transfer
or other disposition of property to a trust by a settlor (whether alone or with
any other settlor) through a person exercising a power, is voidable and –
(a) has such effect as the court may determine, or
(b) is of no effect from the time of its exercise.
(3) The circumstances are where, in relation to the exercise of his
or her power, the person exercising a power –
(a) failed to take into account any relevant considerations or took
into account irrelevant considerations; and
(b) would not have exercised the power, or would not have exercised
the power in the way it was so exercised, but for that failure to take into
account relevant considerations or that taking into account of irrelevant
considerations.
(4) It does not matter whether or not the circumstances set out in paragraph (3)
occurred as a result of any lack of care or other fault on the part of the
person exercising a power, or on the part of any person giving advice in
relation to the exercise of the power.
47G Power to set aside the exercise of powers in relation to a trust
or trust property due to mistake
(1) In this paragraph, ‘person exercising a power’ means a person who,
otherwise than in the capacity of trustee, exercises a power over, or in
relation to a trust, or trust property.
(2) The court may on the application of any person specified in Article 47I(2),
and in the circumstances set out in paragraph (3), declare that the
exercise of a power by a trustee or a person exercising a power over, or in
relation to a trust, or trust property, is voidable and –
(a) has such effect as the court may determine; or
(b) is of no effect from the time of its exercise.
(3) The circumstances are where the trustee or person exercising a
power –
(a) made a mistake in relation to the exercise of his or her power;
and
(b) would not have exercised the power, or would not have exercised
the power in the way it was so exercised, but for that mistake, and
the mistake is of so serious
a character as to render it just for the court to make a declaration under this
Article.
47H Power to set aside the exercise of fiduciary powers in relation to
a trust or trust property
(1) In this paragraph, ‘person exercising a power’ means a person
who, otherwise than in the capacity of trustee, exercises a power over, or in
relation to a trust, or trust property and who owes a fiduciary duty to a
beneficiary in relation to the exercise of that power.
(2) The court may on the application of any person specified in Article 47I(2),
and in the circumstances set out in paragraph (3), declare that the
exercise of a power by a trustee or a person exercising a power over, or in
relation to a trust, or trust property, is voidable and –
(a) has such effect as the court may determine; or
(b) is of no effect from the time of its exercise.
(3) The circumstances are where, in relation to the exercise of his
or her power, the trustee or person exercising a power –
(a) failed to take into account any relevant considerations or took
into account irrelevant considerations; and
(a) would not have exercised the power, or would not have exercised
the power in the way it was so exercised, but for that failure to take into
account relevant considerations, or that taking into account of irrelevant
considerations.
(4) It does not matter whether or not the circumstances set out in paragraph (3)
occurred as a result of any lack of care or other fault on the part of the
trustee or person exercising a power, or on the part of any person giving
advice in relation to the exercise of the power.
47I Applications and orders under Articles 47E to 47H
(1) An application under Article 47E(2) or 47F(2) may be made
by any settlor or any of his or her personal representatives or successors in
title.
(2) An application under Article 47G(2) or 47H(2) may be made
by –
(a) the trustee who exercised the power concerned, or the person
exercising a power (as the case may be);
(b) any other trustee;
(c) a beneficiary or enforcer;
(d) the Attorney General in relation to a trust containing
charitable trusts, powers or provisions;
(e) any other person with leave of the court.
(3) Without prejudice to Article 51 and subject to paragraph (4),
the court may, consequential upon a declaration made under any of Articles 47E
to 47H, make such order as it thinks fit.
(4) No order may be made under paragraph (3) which would
prejudice any bona fide purchaser for value of any trust property without
notice of the matters which render the transfer or other disposition of
property to a trust, or the exercise of any power over or in relation to a
trust or trust property, voidable.
47J Savings in respect of applications made under Articles 47E
to 47H
Nothing in Articles 47E
to 47H shall prejudice –
(a) any application for a declaration that a transfer or other
disposition of property to a trust, or the exercise of any power over or in
relation to a trust or trust property, is void or voidable on grounds other than
those specified in Articles 47E to 47H; or
(b) any personal remedy which may be available against a trustee or
any other person.”.
2 Citation and
commencement
This Law may be cited as the Trusts (Amendment No. 6) (Jersey)
Law 2013 and shall come into force 7 days after it is registered.
a.h. harris
Deputy Greffier of the States