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Equity and Trusts exam question

Please can anyone help with an exam question - please see below:

Jaswinder died two years ago. Jaswinder’s will left the residue of his estate to his trustees, Sabita and Prakesh, to hold on trust for Jaswinder’s widow, Anila, for life, remainder to his grand-daughter, India.

You act for India who has uncovered some disturbing information about the activities of Prakesh. It appears that Prakesh has been stealing money from the trust and has been declared bankrupt.

A year ago, Prakesh made an unauthorised withdrawal of £50,000 from the trust’s bank account. He paid this sum into his own account at Jordan’s Bank which had an existing balance of £10,000. Later he withdrew £40,000 from his Jordan’s account to buy shares in GT Systems Ltd. Subsequently, he used the balance in the Jordan’s account to pay off his gambling debts. The latest price for the GT Systems Ltd shares indicates that the shareholding is now worth £66,000.

It has emerged that Prakesh also withdrew trust capital (amounting to £20,000) which he gave to Anila because she needed money to buy a car. Anila was surprised to receive this sum because her previous requests to both trustees had been refused. She quickly bought a car before Prakesh changed his mind.

India did not discover what had happened until recently because Prakesh’s nephew, Neil, who is a trainee accountant, had produced misleading accounts for the beneficiaries. Neil says he did not realise that he was doing anything wrong. Sabita says that Prakesh took the lead in managing trust matters and she had no idea what was going on.

Explain the actions (if any) which India could bring against:

(a) Prakesh;
(b) Anila;
(c) Sabita; and
(d) Neil.


Does anyone have a structure or how I would answer the above question?

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