Question in Equity and Trust

Problem Question in Equity and Trust, please find the the problem in the Criteria field

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John died 5 years ago. His validly executed will left his estate to Tessa and Vincent to hold on trust for his widow Susan for life and after he death to such of their children, Ben and Kate, who should attain 25, if more than one in equal shares. The will contains no express administrative powers.

Susan, Ben and Kate have consulted you because they would each like some money from the trust for various reasons. Susan needs around £30,000 to pay for urgent repairs to her house. Ben who is now 26 years of age would like help to set up a new business. He needs £100,000 but would be grateful for any assistance. Kate who is 19 years of age has asked for some income to help with her living expenses while she is at university.

The trust fund is currently worth £300,000
Susan is disappointed that the trust fund is worth so little. The value at the date of her husband’s death was approximately £450,000. Susan maintains that two causes have lead to the decline in value. First, the trustees foolishly invested a considerable amount in the shares of Greatech Co Ltd a private company and secondly they delegated the management of the trust portfolio of public limited shares to BestFinance, a firm of financial advisers whose performance has been lamentable. Tessa claims that she is not responsible as Vincent handled all investment matters.

a) Advise Susan whether Tess and Vincent are liable for the loss.
b) Explain whether the trustees must comply with Susan, Ben and Kate’s requests for money.
c) Explain whether Susan can dismiss Vincent and Tessa and get herself appointed as trustee in their place.
Referencing Requirements:
R. Pearce, The Law of Trusts and Equitable Obligations (5th edn, OUP 2010)

Last Updated on February 11, 2019 by EssayPro