. Bates and Crowther are partners in the Private Client department of a firm of solicitors. They are also trustees of a family trust set up two years ago comprising about £800,000 in a deposit account and a freehold office block worth £1.2 million. They are aware of a consensus of opinion in the property industry that changes in property taxation may make the office block worth substantially less, but have decided to take the risk and retain the office block because of their belief that land is always a safe investment in the long run.
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
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Orignal From: BREACH OF TRUST law help?
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