John Rimmer

Litigation resulting from a "disastrous trustee decision"

I was recommended to the client of a leading London private client law firm. A client of theirs had established a trust worth over £1 billion. A disastrous trustee decision meant a huge potential tax issue for the client.

I advised on a mistake application to the Manx court and, with the assistance of a litigation colleague who prepared the court papers, succeeded in having the decision set aside. The legal result was that it was as though the decision had never been made, freeing the client to effect planning with proper advice.

New foundation in the Isle of Man

I was introduced to the owner of a well-known UK national business, who wished to plan the devolution of the business, depending upon its financial fortunes. I advised on the use of a mixed non-charitable purpose and beneficial foundation I was responsible for the passing of foundations legislation in the Isle of Man – something that is novel in the Isle of Man – and preparing the necessary documents, especially the rules.

Working with his commercial and private legal advisers, we created a structure under which shares would be held (and the business supported

financially) with a view to securing the financial future of the business and, given success, to tip them into an employee-ownership trust. This enabled the client to be as confident as he could that the business would continue and, if possible, pass to the employees. Only if that were not possible would it pass to family members.