BREACH OF TRUST law help?aghhhhhhhhhhhhhhh?
Question:
When the trust was set up, the amount on deposit was about £835000 and the trust assets included a vintage car. However the car was sold for £15,000 during the last year to Crowther’s son, while the solicitors firm has charged £25,000 in legal and management fees at the end of 2005 and 2006.
Bates and Crowther have now decided to withdraw the sum on deposit and invest partly in Stock Exchange investments and partly in Delibates Ltd., a delicatessen business in which Bates’ wife has a substantial interest.
The trust is a discretionary trust for the twenty grandchildren of its settlor. The trustees decided shortly after the trust was created to pay all the income to the settlor’s oldest grandchild and have set up standing orders to that effect.
Advise the beneficiaries
Answer:
They are in breach of trust, advise the beneficiaries to have the trustees removed asap. Put an order on the trust bank account to stop them buying the shares pro tem.
No, YOU advise them it's your question!
Always remeber that trustees are in a fiduciary relationship...they must always put the interest of the principal first....if they find themselves in a situation where they have miscalculted then they must pay back into the trust.....
i would go and seek legal advice,get the right information at the start, also go and see your local citizen advice office, they are really good, hope you find the answers you are looking for all the best
Hi,
Ahhhhhhhhhh the wonders of equity and trust law. Very similar to an assignment question I once had. Looks like a uni assignment to me.
You need to look at the Trustees Act, this sets out what trustees can and cannot do. This will give you a good start
Hanbury and Martin. Equity and Trusts is perfect for this question.
Do I know the full answer? Yes, but it would take me ages to discuss all the issues here. You also need case law to back up your assertions.
Good luck.
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