Bermuda's Statutory Hastings Bass - If I Could Turn Back Time

IMAGINE YOUR CLIENT IS A BENEFICIARY OF A TRUST which provides the trustee wide discretionary powers over trust distributions. Your client requests the trustee to make a large distribution to him or her after receiving tax advice that minimal tax will be payable on the distribution. The trustee receives confirmation of the tax advice and makes the distribution as requested. What could possible go wrong?

Unfortunately, after the distribution was made, your client discovers that the tax advice was incorrect and that he or she has actually incurred a significant tax liability. Had your client and the trustee known that the tax liability would have been incurred or was as significant as it was, the trustee never would have made the distribution.