Mistakes happen but the court is here to help – Bermuda court sets aside trustee's tax-blind distribution

Exploring Offshore Litigation · Mar 12, 2026 · 3m

The trustee was the trustee of two related trusts, the A Trust and the B Trust. As part of a restructuring, the trustee, acting in its capacity as trustee of the B Trust, entered into a phased transaction which entailed the distribution of all the assets of the B Trust to a beneficiary. Thereafter, the beneficiary made a gift of those assets to the trustee in its capacity as trustee of the A Trust. The final step of the transaction was the amendment of the A Trust to reflect the terms of the restructuring.

However, the trustee had not taken appropriate UK tax advice before exercising its…