The On The Investment Of The Trust

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(a) The first question considers whether there have been any breaches concerning the investment of the trust and, if so to consider the consequences. As mentioned the will contained no further provisions, therefore there are no express controls in the trust instrument with reference to investment so the following advice is on the basis that the trustees’ powers are statutory. Furthermore we are not told of any provision purporting to exclude liability of the trustees. A trustee may make any kind of investment that he could make if he were entitled to the trust assets , this is referred to as “the general power of investment” . As there are no positive inclusions of a power to invest in a particular manner Fiona and Edwin have “the general power of investment”. The earlier view of investment, is to purchase property from which interest or income is to accumulate: Re Wragg . However in more recent times it is accepted that an investment may include laying out money with an understanding of achieving a return. This view also includes a capital; Harries v Church commissioners for England ; Cowan v Scargill . On this basis investing £150,000 into the investment portfolio, a further £150,000 into Sound Plc and the remainder into the bank; would be regarded as legitimate investments; the trustee is under a duty “to employ money in the purchase of anything from which interest or profit is expected” The Trustees Act (TA) stipulates a duty of care to be imposed upon the
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