QP Essay Topics

Topics for the 2017 Submissions are listed below

For October submission, register before 21 July 2017

Please Note: New topics are issued each year and of the four topic areas a maximum of one question from each topic area can be chosen. Topics chosen must be submitted to STEP using the Qualified Practitioner topic registration forms below.

N.B As part of our ongoing efforts to increase security and ensure the safety of our members, STEP no longer accepts card payment information on forms or by email/fax. Alternative payment options can be found in full on any invoice. 

The Cross-Border Estates Special Interest Group (SIG) has set an essay topic for submission that students from all jurisdictions can register for. The author of the best essay, as judged by the SIG, will be featured in the STEP Journal and SIG webpages showcasing their achievement and promoting them to the STEP world.

Australia

A Law

01: You are instructed by Alice to prepare her will. Alice is 70 years of age but you have no doubt about her capacity to make a will. The estate of Alice would be worth in the region of $2 million. Alice has three daughters, Betty, Claudia and Daisy. Betty lives very close to Alice. Betty is single and in difficult financial circumstances. Betty visits her mother every day and helps her with cooking washing, cleaning, shopping etc. Alice wants to leave the entirety of her estate to Betty. Claudia is married to a "hot shot" lawyer. Claudia and her husband are rich in their own right and enjoy a lavish lifestyle. Daisy has always been a "wayward child" Daisy has been divorced three times, takes drugs, does not hold down a regular job and is a spendthrift. Alice feels that both Claudia and Daisy would challenge her testamentary dispositions under the applicable family provision legislation. What steps could you take to ensure that the wishes of Alice are carried out to ensure that Betty receives the entirety of her estate? How effective would those steps be?

02: Discuss the development of the rights of beneficiaries to obtain trust documents (and the duties if any of trustees to release them) in the light of case law, including case law in other common law jurisdictions, over the last 50 years. Is the situation fair and equitable to the beneficiaries?

B Accounts and Administration

01: Consider the accounting treatment of income and capital interests and problems that can arise in accounting fairly for both interests by reference in particular to special dividends, windfalls and share issues in place of dividends

02: Consider the responsibilities of the trustees with respect to investment policies and the extent of involvement of beneficiaries and appointors into the decisions on investments. Consider whether trustees are required to alter investments which were settled originally by the settlor into trust, in particular an investment into a family business.

C Taxation

01: Tracey comes to see you for tax advice.  She and her brother Tom have been appointed as executors of their mother’s estate which establishes a Testamentary Discretionary Trust (TDT), to which Tracy and Tom are also appointed trustees.  In particular, Tracey wishes to obtain an understanding how the income of a TDT is taxed.  The potential beneficiaries of the trust include three grandchildren who are all minors, Tracy and Tom, and their older sister Mandy who has a mental capacity issue.  The estate is worth $5 million dollars and consists predominately of a large share portfolio of listed Australian shares.  Explain how tax will apply to all these beneficiaries, should they be made presently entitled to trust income.  How will any capital gains tax be applied and what other considerations such as tax elections should Tracy and Tom be made aware of?

02: Tom, who is non-resident in Australia, has assets in Australia and elsewhere.  He establishes an inter vivos trust in Australia, and appoints a non-resident trustee.  Discuss the tax implications of this trust.  What income is taxable, and how would both income and any capital gains be taxed?  Explain any different implications that would apply if the trustee is resident in Australia.

D International Issues

01: CBEG Prize topic – 

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Trust issues requiring resolution often fall into one of the following three categories: (i) essential validity; (ii) construction (substantive interpretation); or (iii) administration. Where the trust relationship has elements involving multiple jurisdictions, a resolution of these trust aspects will involve conflict of laws. Using jurisprudence and any relevant academic authorities or statutes, describe these “aspects” of a trust and discuss how an Australian court determines the law that applies to each of them (i.e., what are the rules for determining the relevant governing law for each “aspect”). In your essay, consider the “proper law” of a trust and discuss whether more than one jurisdiction’s law (whether another State or country) can apply to a trust (or an aspect of it), and whether the applicable law(s), once determined, can change? Also, include in your essay a discussion of clauses relating to governing law and jurisdiction in trust deeds.

Bahamas

A Law

01: Discuss the effectiveness and flexibility of a trust subject to the laws of The Bahamas as an estate planning tool in this era of transparency.

02: What remedies are available to trustees who make mistakes in administering trusts.

B Accounts and Administration

01: Discuss what steps trustees should take as regards identification of the settlor and beneficiaries and the source of the funds settled. What action should a trustee take, if any, if they suspect that a potential client is involved in money laundering activities or terrorist financing?

02: Write a “best practice” set of guidelines for ABC Trust Company, detailing procedures relating to a trust with an underlying company’s accounts. For example, your guidelines could include recommendations on how often a trial balance should be produced, as well as a description of the annual accounts and who is entitled to see them. Explanations of why the administrative staff should follow best practice should also be included.

C International Jurisdiction Issues 

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Analyse the impact on a fixed interest trust where one of the beneficiaries marries a US citizen.

D Local Jurisdiction Issues Bahamas

01: What estate-planning advantages or opportunities (tax-neutral and otherwise) are available through the use of companies limited by guarantee without a share capital?

02: Write an article assessing (i) the potential uses, (ii) pros and cons, and (iii) impact on the Financial Services Industry of The Bahamas Investment Condominium (ICON).

Barbados

A Law

01: (a): Contrast discretionary versus non-discretionary trust settlements, including whether a single trust can comprise both.

     (b) Discuss the issues that you would need to consider with a client who wishes to make a gift to a Trust set up by his brother, if the client and his brother are both from a civil law jurisdiction. You should address the different issues which would arise if the client chooses to donate shares in a company, a cheque or assign an interest in a partnership.

02: Indicating the pros and cons, compare and contrast a foundation, a trust and a company limited by guarantee (or hybrid, i.e. having both guarantors and shareholders) as vehicles for holding assets for the benefit of beneficiaries.

B Accounts and Administration 

01: Discuss a Trustee’s duties in the supervision of an Investment Manager by reference to both statute and case law and with practical examples of how such duties may be fulfilled.

02: (a) You are hired as a new director of a small, but busy trust company. You decide to review the administration of existing trusts, to reassure yourself that they have been correctly administered. Write a review plan explaining the steps that are required in order to assess the administration, taxation and accounting.

     (b) On implementing your plan, you discover that one trust in particular has a history of financial transactions, from the trust’s account and into the settlor’s bank account. On reviewing the trust deed, you are reassured that the settlor is listed as a beneficiary, but there are no file notes or correspondence to explain why varying sums of money are being transferred to his account every few months. On questioning your administrators, you are told that an advisor at a large onshore bank that transfers a few new trusts to you per year, sometimes calls up and lets your staff know when a client needs some more cash in their current account. What would your response to this situation be?

C Taxation

01: Compare the tax positions of capital versus income beneficiaries.

02: Compare the tax positions of a trust versus a foundation and a company generally, with particular reference to the type of tax rates (flat or graduated) applicable, and the deductibility of distributions paid to beneficiaries and company dividends paid to shareholders.

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Describe the role of a Protector typically found in offshore jurisdictions.

Bermuda

A Law

01: Under Re Hasting v Bass [1975] 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 [2011] 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.

C Taxation

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 -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

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.

British Virgin Islands

A Trust Law

01: Comment on the factors which should be taken into account when a third party lends money to trustees.

02: ‘Discuss the circumstances in which a trust would be considered to be no more than a bare trust as a result of the extent of the powers which are expressly reserved by the trust instrument to the settlor and the consequences of the trust being no more than a bare trust.’

B Accounts and Administration

01: Describe and comment on the duties of a trustee of a trust which has as part of its trust fund a controlling interest in a corporate entity and what can be done to mitigate any liability considerations which might arise.

02: What is the difference, if any, between a power of appointment and a power of advancement and what considerations must a trustee have in mind before exercising either.

C Wills and Estates

01: Compare the respective advantages and disadvantages of (a) a British Virgin Islands will disposing of estate situated within the Territory and (b) a lifetime (inter vivos) transfer of that estate into a British Virgin Islands trust as means of succession planning in the case of persons not domiciled in the British Virgin Islands at death.

02: To what extent is a British Virgin Islands will disposing of estate situated with the Territory necessary or advisable for persons not domiciled in the British Virgin Islands and having freedom of testamentary disposition? Describe the processes whereby a foreign representative of the deceased’s estate would obtain recognition in the Territory.

D Local Issues / International Issues

01: ‘In what circumstances may a BVI company now act as a trustee or protector of a BVI or a non-BVI trust without requiring a licence under the Banks and Trust Companies Act 1990 and why is the BVI now-regarded as a domicile of choice in which to establish a private trust company?’

02: Examine the extent to which it is possible to create trusts for charitable and non-charitable purposes in the BVI and any particular issues which should be addressed when setting up non-charitable purpose trusts.

Canada

STEP Canada QP Essay Topics

Students in Canada should follow the instructions on the STEP Canada Website.

Cayman Islands

A Trust Law

01: When a trustee is considering the exercise of a dispositive power (whether in the nature of a mere power, a trust power or hybrid power) he must do so in a responsible manner. Discuss this statement and the factors that a trustee should take into account when considering whether to exercise a power.

02: (a)Consider the scope of the equitable jurisdiction to set aside transactions on the grounds of mistake where mistakes have been made by trustees in light of the decision in Pitt v Holt; Futter v Futter. 

B Wills and Estates 

01: i Discuss the requirements for testamentary capacity under Cayman Islands law.
ii Discuss the requirements for mutual wills to be created (with reference to the recent relevant decisions) and describe the manner in which the agreement can, and cannot restrain the actions of the survivor to the agreement

02: Discuss the circumstances when rectification of a will may be available and other remedies that are available to beneficiaries when the will fails to carry out the testator's wishes. 

C Accounts and Administration

01: 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.

02: What are the principal tax considerations that a trustee should bear in mind in when accepting assets into trust, distributing or lending to beneficiaries or making assets available for the use of beneficiaries? To what extent can a trustee discharge its duties by notifying a beneficiary of the need to obtain their own legal and tax advice about distributions.

D Local Issues 

01:CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

Cyprus

A Law

01: Discuss all the Cyprus laws and regulations that a trustee should be well aware of when accepting to act as a trustee under a Cyprus trust and to which the trustee needs to comply.

02:  Discuss what rights may be granted to the beneficiaries under a trust either pursuant to the law or by virtue of the trust deed and how these rights can be enforced by the beneficiaries against the trustee. What protection may be granted to the trustee in any of such instances?

B Administration 

01: Discuss the roles of the settlor and the trustee within a trust, what are their duties and powers, to what extent and when such powers can be reserved and how the Cyprus law regulates their separate powers and duties. Also discuss if there can be any overlap in any of such powers.

C Taxation 

01: Comment on Cyprus tax law provision for Cyprus international trusts and Cyprus "non-international trusts" with emphasis on the taxation of income and distributions.

02: Discuss whether a trustee should prepare audited financial statements, including consolidated financial statements, and to whom such statements may be distributed.

D International Issues 

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Consider the applicability and acceptance of a trust in European Community and comment on recent developments affecting trusts in general.

England and Wales

A Law

01: A TEP is about to see a new client. The client is elderly and is partially paralysed by a stroke which has affected his speech. The appointment has been arranged for the afternoon because the client “is better in the afternoons”. He is planning to marry a woman much younger than himself and wants to give instructions for:

1) A new will to provide for his new wife,

2) A lasting power of attorney (property and financial affairs) appointing his new wife as sole attorney, and

3) An advance directive dealing with his medical care if he loses mental capacity

The TEP will be expected to witness the client's signature to the documents in due course and also provide the certificate in Section 10 of the lasting power of attorney.

Referring to applicable statute and case law and other relevant materials:

(a) What does the TEP need to consider to determine whether the client has legal capacity to achieve his objectives?

(b) In regard to establishing the client's mental capacity, what obligations does the TEP have both before accepting these instructions and in carrying them out? Include a brief description of the practical steps the TEP might take to comply and to demonstrate compliance.

(c) What is the role of medical evidence in the assessment of legal capacity, and what weight does the Court give to medical evidence when other evidence is available?

02: At a party recently you met a married couple, Adam and Brenda, who, when they discovered what you did for a living, insisted on asking you about wills. They have one daughter, Charlotte, from their marriage. She is doing her A levels. Adam is significantly older than Brenda and he has one son, David, from a previous marriage. David is in his mid-thirties and has three children of his own. David and Brenda have never got on. Brenda has three children, Emily, Fiona, and Gordon, from her previous marriage. Emily has two children, Fiona has one and Gordon has none yet. Adam and Brenda say they are reasonably well off, but not rich. They own their home and have some savings. However, Brenda expects to inherit from her parents when they die. Adam's parents are both already deceased. Adam thinks it likely that Brenda, being still relatively young, will remarry after his death.

Adam and Brenda tell you that they want to do simple wills under which everything will pass to the survivor on the first death, until he or she dies or starts a new relationship. Whatever is left after that is to be used primarily to ensure that Charlotte has a roof over her head and adequate financial support while she is in full time education, but, subject to that, they want to ensure that all the children (and grandchildren if a child has predeceased) are treated fairly.  They were going to draw the wills up themselves, and did some research on the internet which convinced them that mutual wills were the answer, but they sounded a bit complicated so they want you to draw them up and have made an appointment for that purpose.

Identify any problems that may arise in drafting the wills to give effect to their wishes and critically evaluate the possible solutions to those problems; including the advantages and disadvantages of mutual wills and the practicalities of drafting them.

B Accounts and Admin

01: (a) You are instructed by a beneficiary of an estate (with lay executors). The deceased died 18 months ago. Your client’s understanding is that the administration of the estate has now been completed. He is, however, having difficulty in obtaining sufficient information for a sum of money that he has received, which purports to be the majority of the residue, and to find out the balance of the residuary estate.

He wants to ensure that estate administration has been completed correctly. He already has a copy of the Will from the Probate Registry.
Advise him as a beneficiary, giving an indication of the considerations that might allay his fears.

(b) Explain how your approach to the above issue would change if the Executors were a firm of Solicitors and your client, the Beneficiary, were a charity.

Bullet points to consider:-
• The Executor year.
• Rights of a beneficiary for due administration.
• Obtaining accounts.
• Larke – v – Nugus.
• Application to Probate Registry under Section 25 of the Administration of Estates Act 1925 (as amended by Section 9 of the Administration of Estates Act 1971).

02: You Advise the Trustees/Executors on their responsibilities and duties and the matters which should be considered when the trust or estate has a significant shareholding in a private unquoted company.

C Taxation

01: Discuss the Income Tax, Capital Gains Tax and Inheritance Tax treatment of trust in which the settlor has retained an interest.  Your paper should consider the position from both the settlor and trustee perspective and specifically address the issue of multiple settlors, revert to settlor trusts, parental settlements and pre 22 March 2006 interests.

02: Discuss the scope and application of Pre Owned Asset Tax illustrated by a pertinent example in respect of land, chattels and intangible property. Your paper should specifically address any overlap under the gift with reservation code, excluded transactions, elections and compliance.

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Traditionally, it was common practice to advise testators to make a Will in each jurisdiction in which they had assets. Discuss the advantages and disadvantages of this advice and the extent to which the entry into force of the EU Succession Regulation 650/2012 has affected the position.

Gibraltar

A Law

01: Discuss the circumstances when rectification of a will may be appropriate and also what other remedies are available to beneficiaries when the will fails to carry out the testator’s wishes.

02: Comment upon the options available to a testator (and their implications) who wishes to defer the inheritance of his minor beneficiaries beyond their 18th birthday.

B Accounts and Administration

01: 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.

02: Discuss the enquiries required into the circumstances surrounding the ownership of joint property both real and personal and whether owned jointly with the spouse/civil partner or others.

C Taxation

01: What are the circumstances in which the normal expenditure out of income exemption may be claimed and what steps would you advise a client to take who wishes to consider the use of the exemption.

02: Comment upon the circumstances in which a claim may be made for the carry forward of the unused nil rate band inheritance tax allowance on the death of a surviving spouse or civil partner and what information is required.

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02:  What advice would you give to non UK settlors and beneficiaries of foreign trusts who are intending to become UK resident.

Guernsey

A Law

01: The so called rule in Hastings Bass has received a battering from the Supreme Court in England in Pitt v Holt and Futter v Futter ((2013) UKSC26), although somewhat less so in Jersey (see Re S Trust (2011) JRC 117) and the Trusts (Amendment No. 6) (Jersey) Law 201- .

In light of the decision in Gresh v RBC & HMRC (Royal Court 6/2016) consider the status of the rule in Guernsey alongside the equitable jurisdiction of Mistake.  What remedies remain for trustees and beneficiaries and would the position in Guernsey be improved by following the statutory changes adopted in other offshore jurisdictions?

02: In enacting Trusts (Guernsey) Law 2007 the States deliberately sought to be more competitive than before, with certain other jurisdictions.

Consider the wisdom of this objective, the extent to which the provisions of the law are aimed at achieving it and their likely success or failure.

B Accounts and Administration

01: One of the fundamental duties of Trustees is to account. Explain:-(a) What the duty entails in equity and under the Trusts (Guernsey) Law 2007 and (b) The extent to which the duty can be restricted by the trust instrument.

02: Consider the responsibilities of the trustees with respect to investment policies and the extent of involvement of beneficiaries and appointors into the decisions on investments. Consider whether trustees are required to alter investments which were settled originally by the settlor into trust, in particular an investment into a family business

C Taxation

01: “Buy your high value residential property through a Guernsey Company owned by a Guernsey Trust”. Historically that was the advice most commonly given to a non UK domiciled client intending to occupy UK property occasionally but possibly sufficiently to cause the client to become resident in the UK for tax purposes. The advice was given mainly in order to avoid the property being subject to UK inheritance tax.

Discuss whether the advice was and remains sound and any other approaches that might be considered.

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Compare and contrast a trust with a foundation and a company either limited by shares or by guarantee or a combination.

Hong Kong

A Law

01: Consider, from a prospective settlor's perspective, the relative merits of the trust laws of Hong Kong and Singapore?

02: What matters should be considered when advising trustees with regard to the investment of trust funds?

B Accounts and Administration

01: Comment upon the requirements for minuting trustee meetings and the decisions taken with particular emphasis on the trustee’s duties in the supervision of agents. Reference to statute and case law should be included.

02: Consider the requirement for accounts (trusts and estates), their purpose, format and who is entitled to see them.

C Taxation

01: Discuss the profits tax ramifications of a trust carrying on a business in Hong Kong and being in receipt of profits arising in Hong Kong from that business being conducted in Hong Kong.

02: Explain the salaries tax treatment of share options (commenting specifically on situations where an employee is employed outside Hong Kong for part of the period during which an option subsists).

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Discuss the matters to be considered if your client wishes to purchase a sizeable property in a civil law jurisdiction. In particular, consider the will drafting and taxation implications.

Ireland

A Law

01: Trustees and executors have a duty to avoid situations where their personal, business or other interests conflict with the interests of those to who they own fiduciary duties. Please discuss the legal basis for this statement with reference to case law and outline the remedial options open to those affected by the breach of this duty.

02: The law governing trustees’ duties has changed substantially with the introduction of the Land and Conveyancing Law Reform Act 2009. Please discuss by reference to legislation and relevant case law the changes affecting trusts of land and the variation of trusts introduced by this Act.

B Accounts and Administration

01: You are instructed to review the administration of an existing trust, which has been running for 20 years, with a view to establishing that it has been correctly administered. Write a review plan explaining the steps that are required in order to assess the administration, taxation and accounting.

02: Give an analysis of the issues that trustees should consider in the selection of an investment strategy and the appointment of an investment advisor.

C Taxation

01: Discuss by reference to legislation and relevant case law the taxation consequences of settling property on discretionary trusts?

02 What matters should be considered if your client wishes to purchase a sizeable property in a civil law jurisdiction? In particular, consider the will drafting and taxation implications.

D Local Issues Ireland

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: A client who was born in the US and has relocated to Ireland with an Irish spouse approaches you regarding estate planning. He is a director for a firm that has worldwide business interests, listed on the Main Securities Market of the ISE and occasionally receives share options as part of his remuneration package. Assess the options available to him in order to pass the maximum inheritance on to his immediate family.

Isle of Man

A Law

01: Discuss the Hastings-Bass rule and the equitable jurisdiction to provide relief against the consequences of mistake in the light of the Supreme Court decision in Pitt and Another v HMRC and Futter and Another v HMRC. Is the story over?

02: What impact is the Supreme Court decision in Prest v Petrodel Resources Ltd likely to have on the use of corporate structures to hold what are in reality personal assets? What guidance can be offered to Trustees following the Supreme Court decision?

B Accounts and Administration 

01: You are instructed to review the administration of an existing trust, which has been running for 20 years, with a view to establishing that it has been correctly administered. Write a review plan explaining the steps that are required in order to assess the administration, taxation and accounting.

02: Consider the content and structure of accounts for trusts and estates, their purpose and who is entitled to see them. Include reference to the financial statements of any underlying companies.

C Taxation

01: Comment on problems faced by trustees regarding the ownership of UK situated assets directly and in particular the impact of inheritance tax and the proposed consultation recently issued by HMRC to simplify inheritance tax charges on trustees. This should cover why trustees might consider investing through Isle of Man companies rather than directly and any associated issues.

02: Discuss the factors that should be considered prior to deciding whether it would be appropriate to de-envelope UK residential property held through a non-UK company. In particular, the impact of ATED charges and the proposed changes to UK Inheritance tax planned for April 2017.

D International Issues 

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Consider the impact of the UK Intergovernmental agreement with the Isle of Man and the US Foreign Account Tax Compliance Act on the fiduciary sector and steps trustees need to take to make sure they comply.

Jersey

A Law

01: The Jersey court in its judgements in Representation of the Z Trusts ([2015] JRC 196C and [2015] JRC 214) has recently explored the area of insolvency of trusts (as opposed to the insolvency of the trustee itself).  Describe the test for trust insolvency that the court has developed, the court's approach to ascertaining creditor claims and priorities and the realisation of the trust assets and the impact that insolvency has on powers conferred by the trust.  Also, why is Jersey law in this area is different to the equivalent position in English law?

02: Describe the features of the lien that a former trustee of a trust has over trust property, including the priority that the lien has over other claims, the liabilities that it can be used to reimburse and its effect on the duty of the current trustee.  Also, what other means would a retiring trustee typically want to see put in place to protect itself from liability to third parties after it has retired?

B Accounts and Admin

01: You are instructed to review the administration of an existing trust, which has been running for 20 years, with a view to establishing that it has been correctly administered. Write a review plan explaining the steps that are required in order to assess the administration, taxation and accounting.

02: Consider the content and structure of accounts for trusts and estates, their purpose and who is entitled to see them. Include reference to the financial statements of any underlying companies.

C Taxation

01:  Discuss the ownership of residential property in the UK through overseas companies and in particular comment on the impact of the Annual Tax on Enveloped Dwellings, proposed inheritance tax changes discussed in the 2016 UK Budget, ATED related CGT, capital gains tax in general and SDLT.  In particular, the impact on existing structures should be discussed and whether it would be appropriate to de-envelope such structures now.

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Consider the impact of the UK Intergovernmental agreement with Jersey, the Common Reporting Standard and the US Foreign Account Tax Compliance Act on the fiduciary sector and steps and issues trustees need to take and consider to make sure they comply. 

Malta

A Law

01: In terms of article 30 (8) of the Trusts and Trustees Act, the court may relieve the trustee either wholly or in part from liability for a breach of trust where it is satisfied that the trustee has acted honestly and reasonably and ought in fairness to be excused in the circumstances. What in your opinion would the trustee need to argue and exhibit in court in order to prove that it has acted honestly and reasonably.

02: Historically, a trustee could not delegate his powers to administer a trust. Over the years, this prohibition was relaxed for administrative convenience. Examine in detail these two statements and outline the pitfalls that a trustee could encounter when delegating administrative powers.

B Accounts and Administration 

01: In managing trust assets the trustee may be responsible for the performance of a business originally owned and controlled by the settlor.  Argue in favour or against a trustee's decision to give control of the business and a management role in the underlying business to the settlor.  

02: The Trusts and Trustees Act provides no specific guidance as to the books of account to be maintained by trustees, the form and content of accounts which trustees are obliged to prepare, the requirements of review or audit on such accounts and the duties of auditors who may be engaged for such purpose. Make an assessment of the current practice adopted by Maltese practitioners when accounting for Trusts and make suggestions for the development of local accounting guidelines and regulations for trusts in Malta

C Taxation

01: "The tax treatment of trusts in Malta provides neither choice nor opportunity". Discuss this statement.

02: What are the advantages and disadvantages of a settlor retaining an interest in a settlement, with particular reference to taxation issues?

D International Issue

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: You’re approached by a married couple, both South African citizens, who own a house in Malta, which is their only residence and a foreign exchange business that makes an annual profit of around £1 million. This is the main source of income of the husband. The wife works as an attorney in South Africa and commutes back and forth between Malta and South Africa to carry out her profession. The children attend school in Malta and their parents are considering continuing their education in England from the next scholastic year. The wife has inherited property in South Africa and would like her will to take this into account, naming their children 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 and analyse whether a testamentary trust would be a better instrument to be used in this case.

Mauritius

A Law

01: Explain the extent to which a settlor is free to choose the proper law of a trust and the possibility of this conflicting with other laws and considerations. Consider, in this context, the case of a foreign-domiciled settlor appointing Mauritius-based trustees: can and should, and if so to what extent, the law of Mauritius be chosen as the proper law?

02: In your opinion, what amendments to the Mauritius Trusts Act 2001 would make Mauritius more competitive as a trust jurisdiction and why?

B Accounts and Administration 

01: You have been requested to advise a prospective client on the setting up of an appropriate structure for the achievement of charitable objectives using a Mauritius Trust or Foundation. Please advise the client with a comparative analysis between the Foundation as a Civil law preferred structure or the traditional trust structure originated from Common law jurisdiction and which one you think is the best.

02 Consider the requirement for accounts (trusts), their purpose, format and who is entitled to see them. Give examples of applicable case law.

C Taxation

01: Your company acts as trustee of a Mauritius trust; discuss the principles regarding trustee responsibility regarding tax liabilities of the trust. The trust has investments worldwide (including shares and properties) and earns dividends, capital gains and rental income every year. Include issues of private international law, and consider both criminal and civil enforcement matters.

02: A Mauritius Trust with a Mauritian resident Settlor and Beneficiaries also resident in Mauritius owns shares in Mauritius based companies and overseas companies in Africa from which it earns dividends. Discuss:

1) the tax implications in Mauritius in respect of the dividends earned both locally and from overseas including any foreign tax credits it can offset against its income tax liability.

2) if there is a better way to own shares in these companies rather than direct ownership by the Trust in order to save on taxation and why

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Discuss the potential for conflict of laws between the jurisdiction where a trust is administered and the governing legal jurisdiction (proper law) of a trust when they are different, for example if a trust is administered in Mauritius, but the proper law is of a foreign jurisdiction of your choice.

Monaco

A Law

01: Examine the characteristics of Law No. 214 of 27th February 1936 as amended and its use by Monaco residents.

02: Consider the responsibilities of trustees with respect to investment policies and the extent of the involvement of beneficiaries and protectors in the decisions on investments. Consider whether trustees are required to alter investments which were settled originally by the settlor into trust, in particular an investment in a family business.

B Accounts and Administration

01: Comment upon the requirements for recording decisions taken by trustees with particular reference to beneficiaries’ rights to disclosure of information. Reference to statute and case law should be included.

02: Discuss and explain the concept of sham in relation to offshore trusts. Include reference to how such a situation can arise and how, in practical terms, it can best be avoided.

C Taxation

01: Compare the fiscal regime for common law trusts in 3 continental European “onshore”jurisdictions. Analyse the consequences for settlors or beneficiaries domiciled in these countries.

02: Consider the use of a trust as a tax planning opportunity for non French tax residents wishing to settle in France.

D International issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: A UK property developer who has recently sold a company that he built up himself would like to retire to Monaco with his wife. He has retained his real estate portfolio, including properties in the UK, France and Spain and will receive substantial income from all of these. How would you recommend that he arrange his affairs in order to maximise the income he receives in his retirement?

Scotland

A Law

01:The styles frequently adopted for the preparation of Scottish trust deeds has altered dramatically in the last twenty-five years.  Consider these changes and the reasons for them.

02:What changes to Scots law and IHT have been introduced recently which affect the drafting of Wills in Scotland and how should Wills be drafted to cope with these.

B Accounts and Administration

01: Consider the accounting treatment of income and capital interests and problems that can arise in accounting fairly for both interests by reference in particular to special dividends, windfalls and share issues in place of dividends.

02: Compare and contrast the implications of FATCA and CRS for Trustees of Scottish Trusts and how LEI will affect Trusts.

C Taxation

01: In considering how assets can be passed on from one generation to the next, use might be made of trusts, family limited partnership, family investment companies (“entities”) or a combination of these.  Compare and contrast the inheritance tax and capital gains tax treatment of lifetime gifts using  such entities and the capital gains tax and income tax treatment of the entities and the various family members who may have an interest in the entities.

02: Discuss the consequences of the ‘related settlement’ rules and associated operations provisions with regard to multiple settlements both in lifetime and after death.

03:Describe and discuss how the changes to the taxation of Dividends introduced with effect from 6th April 2017 will affect Scottish Trusts and how will the Scottish rate of income tax affect trusts and beneficiaries?

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Describe the advantages and disadvantages of appointing a Protector to a non-UK resident settlement and to a Scottish trust.

Singapore

A Law

01: You are the resident manager in one of the licensed trust companies in Singapore.  Your European business associate is looking to refer new family trust business to you in Singapore. He called you the other day suggesting that as an alternative, their management is considering working with a trust services company in Hong Kong to set up private family trusts administered under the recent Hong Kong trust laws that were introduced in 2013. How would you respond to your European business associate? You would need to compare the Singapore trust laws with that in Hong Kong and the general regulations governing trust services providers in both jurisdictions.

02: The Chang family restaurant businesses celebrated its 40th anniversary this year. Its Founder C.C. Chang is now in his 70s. The restaurant chain known as “Chang Cuisine” also opened its eighteenth outlet this year in Marina Bay Sands. A sister company brand “Chomp Qing Express”, Chinese fast food, established in the late 1990s has thirty outlets island-wide. The two brands, substantially controlled by C.C. Chang are somewhat rivals today (i.e. sibling rivalry mentioned hereafter). Management of the traditional Chinese cuisine business is in the hands of his four children from his first wife whereas the management of the fast food business is in the hands of three children from his second wife. In addition, there are a number of other sister companies that have been set up to deal with the logistics, food supply and other operation needs of the family businesses. The property arm takes ownership of the commercial properties where the restaurants and food outlets operate from. The investment company handles the treasury needs of the group and invests the surplus group profits. CC Chang has been too busy to even drawn up a will. A banker suggested that he sets up a trust, appointing his bank as trustees for succession of his family businesses. His lawyer suggested that CC Chang instead sets up a Private Trust Company for succession planning. (i) Compare the two alternatives suggested by the banker and the lawyer and your preferred structure. (ii) Describe the legal and governance framework under Singapore law in relation to your proposal.

B Accounts, Administration and Compliance

01: Discuss relevant provisions you would advise trustees to fully set out in Licensed Trust Company policies and procedures to cover the process of accepting and reviewing a trust as regards the identification of the settler, beneficiaries and source of funds. Detail what documentation should be obtained and retained, with specific emphasis on the position in Singapore under the Trust Companies Act, inclusive of related Notices, Guidelines and Circulars.

02: Administering Financial Assets in Trusts - Investment matters. Discuss the role and responsibilities of a trustee when dealing with financial assets under different structures e.g. a discretionary trust and a settlor-directed trust. You may want to refer to the Singapore Trustees Act (Chapter 337)  - Part II Investment Standard Investment Criteria. Relate also how a settlor-directed trust would be administered differently if the settlor were to be incapacitated or passed away, with certain powers being vested in trustee.  

C Taxation

01: Discuss the implementation of the US Foreign Account Tax Compliance Act in Singapore and its impact on financial institutions operating in Singapore, with specific reference to Part XXB of the Income Tax Act (Chapter 134)(Revised Edition 2014) including the international tax compliance agreement (Model 1 IGA) between Singapore and the US as well as circulars and guidelines issued by the Monetary Authority of Singapore and the Inland Revenue Authority of Singapore.  What are the measures trustees need to take to ensure they comply?

02: Discuss the nature and scope of the exchange of information regime under the Part XXA of the Income Tax Act (Chapter 134)(Revised Edition 2014) read with the Eighth Schedule to the Act, on exchange of information by request from a competent authority. What advice would you give to the recipient of a statutory notice under section 105E or 105F from the Comptroller of Income Tax on how to respond to such a notice? Elaborate on the safeguards available to prevent confidential bank or trust information from being wrongly disclosed and include a treatment of relevant case law.

D International Issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Asian families (e.g., China, India, Indonesia, Malaysia, Hong Kong, Singapore and Taiwan) have become more internationally connected in terms of their investments and family connections. 

Consider the following situation:

Mr Client and his wife founded a successful real estate business in China or Indonesia. They are citizen and resident of China or Indonesia.  Their elder son is living in the US and holding a US green card. The younger son, an Indonesia passport holder, is working in the family business. Mr Client intends to purchase real estate in US, UK and Singapore. Mr Client maintains banking relationship with private banks in Singapore. Mr Client would like to work an estate planning strategy for succession of his wealth to his two sons.

You have the option to choose Mr Client to be based in China or Indonesia. Discuss the succession law in the jurisdiction where Mr Client is based.  Discuss the challenges and international cross border issues to consider when using a common law trust instrument for Mr Client with a comparison of the common law and civil law concepts. Conclude with a succession plan that is feasible for Mr Client.

Switzerland and Liechtenstein

A Law

01: Describe the options available to an entrepreneur residing in Switzerland (or Liechtenstein) who wishes to ensure the control over his operative companies (by far the most important part of his assets). The testator is married and has minor children. He further wishes to defer the inheritance of his children regarding the operative companies beyond their 18th birthday. Discuss the implications of the estate planning by assuming that Swiss (or Liechtenstein) matrimonial law and Swiss (or Liechtenstein) inheritance law is applicable and by taking into account the likelihood of the estate planning’s acceptance by the local authorities if necessary. You may present your thesis paper either in form of a theoretical essay or in form of a (fictional) case study]. Reference to federal, cantonal and/or local legislation, jurisprudence and/or regulations is expected.

02: Analyse the information rights of beneficiaries of a common law trust and the possibility to enforce them at Court in Switzerland. Compare these rights with the information rights of beneficiaries of a Liechtenstein foundation and their enforcement possibilities in Liechtenstein.

B Accounts and Administration 

01: Report on the rights and duties of a Swiss (or Liechtenstein) will executor regarding the investment policy of the estate. Discuss his liabilities and give concrete advice how to reduce an eventual liability.

02: Consider the responsibilities of the trustees with respect to investment policies and the extent of involvement of beneficiaries and protectors into the decisions on investments. Consider whether trustees are required to alter investments which were settled originally by the settlor into trust, in particular an investment into a family business.

C Taxation

01: Compare the fiscal regime for common law trusts in three continental European “onshore” jurisdictions. Analyse the consequences for settlors or beneficiaries domiciled in these countries.

02: Discuss how Article 26 of the OECD model for double taxation agreements treats trusts, in particular potential beneficiaries in an irrevocable discretionary trust, and how it impacts on bank-client confidentiality, as set down in Art. 47 of the Swiss Banking Act of 1934 (respectively in Art. 14 of the Liechtenstein Banking Act of 1992).

D International issues

01: CBEG Prize topic -

Mohammed died in August 2016 in a road accident in the UK.  He was an Egyptian national and had an Egyptian domicile of origin but had been living in the UK with his English wife Linda for 14 years.  He was well integrated into the local community and he and Linda were pillars of the local church.  However he maintained connections with his home town in Egypt and always said that he intended to return there when he retired. He and Linda had 3 small children, two daughters and a son.

Mohammed had made a will with his English solicitor, leaving everything he owned worldwide on life interest trusts for Linda.  The executors and trustees (a UK based partner in the firm of lawyers for which you work and a UK based accountant) have an overriding power to defeat Linda's interest and subject thereto the trust fund will be held on discretionary trusts for Mohammed's children and remoter issue.  There is a letter of wishes which says that Linda's wellbeing is Mohammed's first priority but that, subject thereto, the trust fund should be shared equally between his children.  The will was made in 2013 and contains references to English statutory provisions.  It also provides that the trust is governed by English law.

Mohammed and Linda owned their main residence in London as joint tenants.  Mohammed also owned in his sole name bank accounts in London and Switzerland and a flat in Paris.

Linda has been told by Mohammed's brother that 'there may be some issues with the will'.

You have been asked to research the position and prepare a paper for the executors and trustees.  This should include an executive summary suitable to pass to Linda.  You have also been asked to list any legal or tax questions which you would like to raise with specialists in the UK or elsewhere.

02: Discuss and explain the concept of sham in relation to offshore trusts.  Include reference to how such a situation can arise and how, in practical terms, it can best be avoided.