01 Under Re Hasting v Bass  Ch 25,
trustees were seen as being given a second bite of the cherry
following mistakes they made. Consider and assess the impact of the
recent Court of Appeal decision in Futter v Futter  EWCA Civ
197 on ill-informed decisions taken by trustees which result in
losses to the trust.
02 In the absence of specific express statutory
rules on the matter, to what extent can a settlor safely reserve
powers and rights to himself (or another party) under Bermuda law
without compromising the integrity of the trust? Consider in light
of any recent case law on the issue.
B ACCOUNTS AND ADMINISTRATION
01 Comment upon the records that trustees are
required to maintain with particular regard to the reasons for them
and who may see them.
02 Discuss what steps you would advise trustees
to take on the creation of a trust as regards the identification of
the settlor, beneficiaries and source of funds. Detail what
documentation should be obtained and retained.
01 Discuss the
stamp duty implications in Bermuda of additions to trusts, change
of trustees and ancillary trust documents and comment on any stamp
duty planning allowable under the Stamp Duties Act 1976 of Bermuda
in relation to trusts.
02 Discuss the differences
between tax evasion and tax avoidance and comment on Bermuda’s
approach to eradicating tax evasion.
D INTERNATIONAL ISSUES
01 CBEG Prize topic: You’re approached by a
married couple, both British citizens of Greek descent, who own a
house in an affluent area of London, which is their only residence
and a small IT business that makes an annual profit of around £1
million, which is their main source of income. The wife has taken
up property development as a hobby and has one or two small
properties across the Southeast of England at any time, which she
works on on weekends and aims to sell within a year of purchase.
The husband has recently inherited some land in Northern Cyprus and
the couple would like to have new Wills to take this into account,
naming their son and two daughters as equal beneficiaries of their
shared property. Give a detailed analysis of the issues that a
conscientious will writer should take into account at each stage of
the will writing process, from taking instructions to delivery of
the completed documents.
02 Comment upon the significance of and the
effect of the proper law of a trust and how this is determined and
explain the circumstances when this might be changed.