Introduction to trusts: claims about error relating to trust: error in trust deed (rectification)
Where it is claimed a trust deed or deed of appointment contains an error or omission that means it does not properly reflect the parties’ intentions, the parties may seek to have the deed ‘rectified’ by the High Court. In such cases, they may ask whether HM Revenue & Customs wants to be joined in the proceedings.
In some cases the parties may instead approach us seeking our agreement to ignore the error for tax purposes without going to Court. In the absence of a court order, we would normally adhere to the tax consequences that flow from the actual words in the document.
Refer all cases involving ’rectification’ of trust deeds to Trusts Technical Edinburgh for advice.