In the matter of the V Settlement

AND IN THE MATTER OF REPRESENTATION OF VISTRA TRUST COMPANY (JERSEY) LIMITED AND ANOTHER

This is an application under what is known as the Hastings-Bass principle for an order setting aside a deed of appointment dated 1st October, 2008, ("the 2008 deed"). At the hearing the Court granted the relief sought and it now gives its reasons.

Vistra Trust Company (Jersey) Limited (" Vistra " or "the Trustee") is the trustee of a settlement dated 24th June, 1997, ("the Trust") constituted by the second Representor as settlor ("the settlor"). The original trustee was Cantrust CI Limited but Vistra (under its former name of W J B Chiltern Trust Company (Jersey) Limited) was appointed as trustee in place of Cantrust on 3rd October, 2003.

On 1st October, 2008, by means of the 2008 deed, the trustee exercised the power under clause 7 so as to convert the trust from an interest in possession trust into a conventional discretionary trust in favour of the discretionary beneficiaries. The settlor and his wife were parties to the deed so as to give their consent.

The execution of the 2008 deed had the effect of triggering an immediate liability to inheritance tax in the United Kingdom of between £54,949 and £65,175 (depending on the value attributed to one of the assets of the trust). Furthermore, the trust will as a result, become liable to the 10 yearly charge to inheritance tax under the relevant UK legislation. In the event of the premature death of the settlor within 7 years of the execution of the 2008 deed, the inheritance tax might double.