wood675
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Hi guys, really hope you can help me out with this coursework as I have no idea how to start:Christopher died in 2017, leaving a will in which he appointed Bethany and Sandeep as his trustees and executors and made, inter alia, the following provisions: a) £20,000 to be invested for Simran at 25.b) 10,000 shares in Music Masters Ltd. to Timothy for life, re¬mainder to Rebecca.c) £500,000 to my wife, Amelia for life, remainder to my children, Eleanor and Jacob.The trust’s assets also included a lease of "Tong Lodge".

Bethany is a retired doctor and Sandeep is an accountant.

Simran is 14 years old, Timothy is 66 years old and Rebecca is 13 years old.

Eleanor and Jacob are aged 18 and 21 respectively.

In 2018, Thomas, a solicitor, advised the trustees that it would be in
the best interests of the trust if they were to purchase the freehold of
“Tong Lodge". The pur¬chase was completed in June 2018.
Thomas conducted all the negotiations on behalf of the trust and did
all the conveyancing work.

In June 2020, the trustees created a 5 year lease of "Tong Lodge"
in favour of Thomas for £10,000. There has since been a boom in
property prices in the area and it is calculated that the remaining term
of the lease is now worth £55,000.

In August 2020, the trust purchased the freehold of "The Barn" from
Bethany for the lowest of three independent valuations. Bethany had
purchased the barn in 2003.

Bethany and Sandeep would like to invest up to half of the £500,000 in commercial property which they believe will provide a secure long term profit for the trust. It has also been suggested to them by Mark, a friend of theirs who is in the process of setting up in business as a financial consultant, that ‘one of the best investments they could make’ is ‘to invest a considerable sum in purchasing vintage wine which in recent years has provided better returns than commercial property investments’.

Rebecca's family have recently requested that the trustees consider
transferring as much of Rebecca’s prospective interest as possible to
another trust of which Rebecca is a beneficiary. The family have been
advised that this would result in a financial benefit to Rebecca but
only if Timothy does not die within the next ten years.

Simran’s father has also suggested the trustees that they must use
the income arising from the trust to assist Simran, if they are
requested to do so.


In light of the above circumstances:

1. Advise the beneficiaries whether they can take any action against Thomas or Bethany (you can assume that their investment decisions are not being questioned); and

2. Advise the trustees on their investment policy and whether they may or must do as Rebecca’s family has requested and as Simran’s father has suggested.
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Lawschoolhack
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Start by identifying the core issues and then do your research. The coursework covers several topics.
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wood675
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(Original post by Lawschoolhack)
Start by identifying the core issues and then do your research. The coursework covers several topics.
Hi! Could you elaborate a little? I am really struggling with this, thanks!
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Lawschoolhack
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Start by identifying the general topic. For example, the trustees have been asked to re-settle R's share in the trust fund and pay income to S (on demand). So start researching whether trustees have the power to take capital from the trust fund and re-settle it and whether they must pay income to a minor on request.

You need to get your head around what is actually happening from the facts. So unpick them carefully. The questions provide guidance as to what the examiner requires you to disucss. For example question (a) asks if the bens can take any action against the trustees so look for a possible breach or breaches of the trustees' duties.
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wood675
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(Original post by Lawschoolhack)
Start by identifying the general topic. For example, the trustees have been asked to re-settle R's share in the trust fund and pay income to S (on demand). So start researching whether trustees have the power to take capital from the trust fund and re-settle it and whether they must pay income to a minor on request.

You need to get your head around what is actually happening from the facts. So unpick them carefully. The questions provide guidance as to what the examiner requires you to disucss. For example question (a) asks if the bens can take any action against the trustees so look for a possible breach or breaches of the trustees' duties.
Wow that’s brilliant that actually helps a lot!! Thanks so much 🙂
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Lawschoolhack
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Hopefully you managed to work it out.

Part 1 - breach of fiduciary duty
Part 2 - duty of care in relation to investments (TA 2000 ss.1, 4 & 5 in particular ) and maintenance and advancement (TA1925, ss. 31 and 32).
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wood675
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(Original post by Lawschoolhack)
Hopefully you managed to work it out.

Part 1 - breach of fiduciary duty
Part 2 - duty of care in relation to investments (TA 2000 ss.1, 4 & 5 in particular ) and maintenance and advancement (TA1925, ss. 31 and 32).
I really appreciate your help, I’ve managed to do most of the coursework, I am just struggling on the first question relating to the lease in favour of Thomas, do you think that would be a breach of fiduciary duty? Thanks!
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CarolineMills99
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Hey, I am also doing the same coursework question and I am finding it hard to answer question 2. Were you able to figure it out? If so are you able to help me.

Thank you
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CarolineMills99
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(Original post by wood675)
I really appreciate your help, I’ve managed to do most of the coursework, I am just struggling on the first question relating to the lease in favour of Thomas, do you think that would be a breach of fiduciary duty? Thanks!
To answer your first question, I spoke about how Thomas was in a breach of a fiduciary duty as he broke the no conflict rule. He advised the trustees to purchase the freehold then he purchased the lease two years after in his personal capacity which means he put his best interests over the trusts'.

Hope this helps!
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CarolineMills99
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(Original post by CarolineMills99)
To answer your first question, I spoke about how Thomas was in a breach of a fiduciary duty as he broke the no conflict rule. He advised the trustees to purchase the freehold then he purchased the lease two years after in his personal capacity which means he put his best interests over the trusts'.

Hope this helps!
I am a new member so I cant reply to your Pm! But yes I am a student there and I have seen what you're talking about. Thank you so much! How did you get on with the 1st question?
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wood675
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(Original post by CarolineMills99)
I am a new member so I cant reply to your Pm! But yes I am a student there and I have seen what you're talking about. Thank you so much! How did you get on with the 1st question?
It’s a little bit difficult to get your head around, but i spoke about how the purchase of ‘tong lodge’ was a breach of duty since trustees cannot buy trust property, and also the purchase of ‘the barn’ is not a breach, because bethany purchased it before she was a trustee!
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CarolineMills99
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Oh good. I did the same but I wasn't 100% sure on Thomas' part of the question so thank you so much for reassuring me! Thanks for your help and good luck! I'll be happy to return the favour if you need help too!
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Lawschoolhack
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(Original post by CarolineMills99)
Oh good. I did the same but I wasn't 100% sure on Thomas' part of the question so thank you so much for reassuring me! Thanks for your help and good luck! I'll be happy to return the favour if you need help too!
(Original post by wood675)
It’s a little bit difficult to get your head around, but i spoke about how the purchase of ‘tong lodge’ was a breach of duty since trustees cannot buy trust property, and also the purchase of ‘the barn’ is not a breach, because bethany purchased it before she was a trustee!
There is a breach by Bethany IMO.
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adrian1999
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(Original post by Lawschoolhack)
There is a breach by Bethany IMO.
Can you please explain how?? Thank you
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adrian1999
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(Original post by wood675)
I really appreciate your help, I’ve managed to do most of the coursework, I am just struggling on the first question relating to the lease in favour of Thomas, do you think that would be a breach of fiduciary duty? Thanks!
Would you mind helping me with Q2 please? Have the same question and it’s confusing asf
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Lawschoolhack
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(Original post by adrian1999)
Would you mind helping me with Q2 please? Have the same question and it’s confusing asf
See if my earlier posts help re Q2 .
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Lawschoolhack
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Can you please explain how?? Thank you
IMO the fact that she bought the property before becoming a trustee is irrelevant. However, the issue is whether the valuations protect her.
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adrian1999
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(Original post by Lawschoolhack)
IMO the fact that she bought the property before becoming a trustee is irrelevant. However, the issue is whether the valuations protect her.
Thank you, managed to answer Q2 and your comments were really helpful!
Regarding Q1 and Bethany, can you please explain a little bit more... is it still the breach of fiduciary duty we are also talking about here? Or another breach? A little confused
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Lawschoolhack
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(Original post by adrian1999)
Thank you, managed to answer Q2 and your comments were really helpful!
Regarding Q1 and Bethany, can you please explain a little bit more... is it still the breach of fiduciary duty we are also talking about here? Or another breach? A little confused
breach of fiduciary duty
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adrian1999
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(Original post by Lawschoolhack)
breach of fiduciary duty
How would the valuations result to a breach by Bethany? I don’t quite understand...
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