James Campbell
Partner | Legal
Jersey
Partner
Jersey
Big things are happening at Ogier. Change is embedded in everything we do. It is redefining our talent, our ways of working, our platforms of delivery, our culture.
Services
We have the expertise to handle the most demanding transactions. Our commercial understanding and experience of working with leading financial institutions, professional advisers and regulatory bodies means we add real value to clients’ businesses.
Sectors
Our sector approach relies on smart collaboration between teams who have a deep understanding of related businesses and industry dynamics. The specific combination of our highly informed experts helps our clients to see around corners.
We have the expertise to handle the most demanding transactions. Our commercial understanding and experience of working with leading financial institutions, professional advisers and regulatory bodies means we add real value to clients’ businesses.
Legal
Corporate and Fiduciary
Consulting
Banking and Finance
Corporate
Dispute Resolution
Employment law
Intellectual Property
Investment Funds
Listing services
Local Legal Services
Private Wealth
Property law
Regulatory
Restructuring and Insolvency
Tax
Banking and Finance overview
Asset Finance
CAYLUX Fund Finance
Debt Capital Markets
Derivatives
Fund Finance
Islamic Finance
Leveraged Finance
Listing services
Real Estate Finance
Regulatory
Restructuring and Insolvency
Structured Finance
Sustainable Finance
Corporate overview
Economic Substance
EIIS Services in Ireland
Equity Capital Markets
Insurance and Reinsurance
Listing services
Mergers and Acquisitions
Private Equity
Real Estate Structuring, Acquisitions and Disposals
Regulatory
Technology and Web3
Dispute Resolution overview
Banking Disputes
Corporate and Financial Services Disputes
Crypto Disputes
Enforcement of Judgments and Awards
Fraud and Asset Tracing
Funds Disputes
Insurance Disputes
International Arbitration
Regulatory
Restructuring and Insolvency
Section 238 Shareholder Appraisal Rights
Shareholder and Valuation Disputes
Trusts Disputes and Applications
Investment Funds overview
Hedge Funds
Managers and Sponsors
Private Equity
Real Estate, Infrastructure and Energy Funds
Regulatory
Sustainable Investing and Impact Funds
Technology and Web3
Local Legal Services overview
Cayman Local Legal Services
Channel Islands Local Legal Services
Ireland Local Legal Services
Employment law
Estate Planning, Wills and Probate
Expat services
Family Office
Intellectual Property
Make your Guernsey will online
Make your Jersey lasting power of attorney online
Make your Jersey will online
Notary public services
Relocating your business
Relocating your family
Property law
Accounting and Financial Reporting Services - Ogier Global
Cayman Islands AML/CFT training - Ogier Global
Corporate Services - Ogier Global
Debt Capital Markets - Ogier Global
Fund Services - Ogier Global
Governance Services - Ogier Global
Investor Services - Ogier Global
Ogier Connect - Ogier Global
Private Wealth Services - Ogier Global
Real Estate Services - Ogier Global
Regulatory and Compliance Services - Ogier Global
Our sector approach relies on smart collaboration between teams who have a deep understanding of related businesses and industry dynamics. The specific combination of our highly informed experts helps our clients to see around corners.
Ogier provides practical advice on BVI, Cayman Islands, Guernsey, Irish, Jersey and Luxembourg law through our global network of offices across the Asian, Caribbean and European timezones. Ogier is the only firm to advise on this unique combination of laws.
Keep up to date with industry insights, analysis and reviews. Find out about the work of our expert teams and subscribe to receive our newsletters straight to your inbox.
Fresh thinking, sharper opinion.
We get straight to the point, managing complexity to get to the essentials. Our global network of offices covers every time zone.
No Content Set
Exception:
Website.Models.ViewModels.Components.General.Banners.BannerComponentVm
Insight
27 August 2015
Jersey
Introduction
In Representation of X Trustees Limited [2015] JRC 136, the Court was asked to approve variations to a settlement on behalf of the Settlement’s minor, unborn and unascertained beneficiaries in accordance with the Trusts (Jersey) Law 1984 (the Law).
Background
Article 47 of the Law provides that the Court may approve certain actions, including variations, on behalf minor, unborn and unascertained beneficiaries where the action appears to the Court to be for the benefit of the relevant beneficiaries.
Facts
The Trustee wished to vary the Settlement in order to:
(i) extend the trust period of the Settlement which was due to expire in 2016; and
(ii) give the Trustee greater powers to accumulate income for the beneficiaries.
Both variations had the support of the Settlement’s adult beneficiaries.
Conclusion
It was for the Court to decide whether these variations were in the interests of the minor, unborn and unascertained beneficiaries of the Settlement in accordance with Article 47(2).
In relation to the first variation, the Court considered that, were the Settlement to expire in 2016, a capital gains tax charge would be triggered and the assets would fall within the scope of UK inheritance tax as the beneficiaries are resident in the UK.
Having considered In the matter of the DDD Settlements [2011] JRC 243, where tax planning was found to be a benefit, the Court held it was for the benefit of the minor, unborn and unascertained beneficiaries to allow the Settlement to continue to grow outside of the UK and that this could be achieved by extending the trust period.
In relation to the second variation, the Court noted that the assets of the Settlement consisted of shares in an underlying company, meaning there was no income accumulation. While allowing income accumulation might not result in any immediate benefit to the relevant beneficiaries, the Court considered that such a change would allow the Trustee to manage the Settlement more efficiently for the future.
It was therefore held that by removing the current inflexibility on income accumulation, the Trustee could control the flow of income in a planned way for the benefit of the minor, unborn and unascertained beneficiaries.
Finding that both variations were for the benefit of the relevant beneficiaries, the Court therefore gave its approval in accordance with Article 47.
Comment
Previous case law has found that “benefit” for the purposes of Article 47 is to be construed widely and is not limited to financial interests. This case demonstrates that tax planning and management of trust funds may also be considered “benefits” when asking the Court to approve variations to Settlements under Article 47.
James Campbell
Partner | Legal
Jersey
Partner
Jersey
Contact James
Back
Josephine Howe
Partner | Legal
Jersey
Partner
Jersey
Contact Josephine
Back
Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.
This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.
Regulatory information can be found under Legal Notice
Sign up to receive updates and newsletters from us.
Sign up
No Content Set
Exception:
Website.Models.ViewModels.Blocks.SiteBlocks.CookiePolicySiteBlockVm