In the matter of the H Trust - 3-Dec-2020

This is an application by Vistra Trust Company (Jersey) Limited ("the Trustee") as trustee of a settlement known as the H Trust ("the Trust") for blessing of a momentous decision, namely to enter into a settlement agreement ("the Settlement Agreement") to compromise certain proceedings which have been brought against the Trustee in Sweden. We gave our approval at the conclusion of the hearing and now give the reasons for our decision.

The background is as follows. The Trust was established on 2 nd June, 2016 by Mrs J ("the Settlor"). She was a widow and had inherited many of the assets which she contributed to the Trust from her husband.

The Settlor had one biological child, ("R"). He in turn has four adult children ("R's children"). The Settlor's husband had two children by his previous marriage, namely ("T") and ("U"). The latter has twin adult children ("U's children").

The Trust is a conventional discretionary trust governed by Jersey law. The schedule to the Trust names nine beneficiaries, namely the Settlor, R's children, T, U and U's children. Apart from the nine named beneficiaries, the class includes "the issue of the Beneficiaries named at 1-9 above" .

The Settlor resided in Sweden and died on 1 st October, 2017. As her sole child, R is entitled to claim 50% of her estate. Under Swedish law, R also has the right to claw back into the estate any assets transferred by the Settlor prior to her death to the extent that such transfers were undertaken with the sole purpose of circumventing R's statutory share. He has instituted proceedings in Sweden against the Trustee seeking to claw back substantial assets transferred to the Trust by the Settlor before her death.