Nobody downloaded yet

Remedies and Replacements of Trustees - Case Study Example

Comments (0) Cite this document
In our present case, Georgina Haversham willed her properties in favour of her grand children, Estelle and Peter, appointing Cathy and David as trustees. According to the Trustees Act 2000, trustees have to hold and apply the trust property for the benefit of other persons, known as the beneficiaries and they have a fiduciary duty to always act in the best interests of the trust and in accordance with the purposes set down in the trust deed and the general trust law.
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.6% of users find it useful
Remedies and Replacements of Trustees
Read TextPreview

Extract of sample "Remedies and Replacements of Trustees"

Download file to see previous pages A variant of this type of trust is an accumulation and maintenance trust, which is also termed as a grandchildren's trust. Its use is to benefit a particular child or children who are under a specified age, when they become entitled to the income by right and frequently to the capital also.
The trust deed, at times will give the trustees certain discretionary powers permitting them to decide as to which of the beneficiaries will receive the income or capital of the trust. The trust deed generally gives clear instructions as to the trustees' administrative powers for routinely dealing with trust property.
In our case, since, the trust deed is silent with regard to the administrative powers of the Trust the law will take its own course for proper administration of the trust. Seven years ago, Cathy took 50,000 from the trust and used it on a new kitchen and a conservatory. If the trustee becomes bankrupt or dies, or the trustee transfers assets in breach of trust then the beneficiaries have the right to claim their equitable ownership of the trust assets against the trustee's trustee in bankruptcy in other words the individual appointed by the court who takes charge of a bankrupt person's assets, or his personal representative on death, or the transferee of trust assets transferred in breach of trust. Two of Georgina's grandchildren who were alive at her death, namely Estelle, now aged 21 years and Peter, now aged 23 years came to know that the Trust property was misappropriated by Cathy. Since, seven years ago Estelle and Peter were minors and also they came to know about this fraud only recently, the limitation for claiming their rights begins from the day from which they came to know about this fraud. Hence, they can proceed against Cathy's court appointed trustee in order to recover 50,000.
In Barnes v Addy, it was held that a third party may be liable as constructive trustee if it "receives and becomes chargeable with some part of the trust property" , this is known as the first limb or knowing receipt or where they "assist with knowledge in a dishonest and fraudulent design on the part of the trustees", this is termed as the second limb or knowing assistance; which held that tracing, may provide a proprietary remedy to the plaintiff along with the personal liability of the defendant including return of property (Barnes v Addy, 1874).
The beneficiaries' interest in the trust money binds not only Cathy but also her successors in title, including volunteers who either receive trust property or its traceable proceeds. Hence the trust amounts paid to Bob by Cathy can be fully recovered at the suit of the beneficiaries. The remedy available to Estelle and Peter is that they can move the court to transfer the Tippit shares, in which Bob had invested their trust money, and hand over the painting for value to them. Bob invested the amount of 40,000, which was given by Cathy under the pretext that she had won the amount in a lottery.
Bob added 20,000 of his money to the bank account without knowing the fraud committed by Cathy. Since he is an innocent third party his liability is limited to the amounts given to him by Cathy. In 2004 Bob withdrew 20,000 and bought a painting whose value is 5,000 at present. In respect of this painting the law will keep track of its value ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Remedies and Replacements of Trustees Case Study”, n.d.)
Remedies and Replacements of Trustees Case Study. Retrieved from
(Remedies and Replacements of Trustees Case Study)
Remedies and Replacements of Trustees Case Study.
“Remedies and Replacements of Trustees Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Remedies and Replacements of Trustees

Trustees Duties and Powers

...heavy charges from Alice for the breach of trust. Following are points which may be referred to calculate the remedies for the breach of trust: “The remedy for breach of trust depends on the breach, but the main objective is to make the beneficiaries whole. (b) Lists the following remedies, allowing the court to: compel the trustee to perform his duties or to pay money or restore property; enjoin the trustee from committing a breach of trust; order a trustee to account; suspend or remove the trustee, and appoint a special fiduciary to take possession of the trust property and administer the trust; reduce or deny...
10 Pages(2500 words)Essay

Australian Trusts and Trustees Act

.... What was the applicant seeking from the court? The applicant was seeking declarations regarding the purpose and structure of the Bedford Trust. Declarations to the effect that: i.) The purpose of the Bedford Trust has ceased to provide a suitable and effective method of using the trust property – Section 105(1)(d); Section 105(1)(e)(iii) of the trust Act ii.) St Vincent’s Healthcare Limited is the trustee of the Bedford Trust. The applicant was also seeking an order under Section 106 of the Trust Act of 1973, to the effect that orders be issued that would allow: i.) St Vincent Hospital continue in the provision of care for all for all inpatient as well as providing palliative care services ii.) Continue in the provision...
9 Pages(2250 words)Essay

The status of trustees

..."Government is a trust, and the officers of the government are trustees; and both the trust and the trustees are created for the benefit of the people." -Henry Clay, American Statesman Such is the status a trustee has. In fact, a trustee is someone who is looked upon as the keeper of something very significant, maintaining and sustaining the virtues of faith. In legal terminology a trustee is referred to as a fiduciary, which has a pertinent etymology. The word fiduciary comes from the Latin word 'fides' meaning faith. A beneficiary puts his entire trust on a fiduciary, who in turn has to keep his self interests at bay and must not profit from the benefits of the position he holds... . A...
6 Pages(1500 words)Case Study

Absenteeism:causes,costs and remedies has seen clear that absenteeism costs heavily on the organization directly and indirectly. Remedies: In these circumstances, this absenteeism needs intervention by the management. Managers should take steps to remove causes of absenteeism. Fitzpatrick and Huzynski (1989) suggest that careful assessment and analysis of absence problems is essential for effective solutions. This involves characterization of the absence problem within an organization and identification of the causes before designing and implementing strategies suited to that organization. They further suggest that solutions can be chosen from a range of people, work and organizationally focused strategies. One of the most important strategies will be...
3 Pages(750 words)Essay

Bonds and Trustees

...Bonds and Trustees Re (i) Most bondholders employ a trustee to oversee the transactions involving their bondholding. A trusteeship agreement embodies in the Trust Deed the conditions and obligations involved thereon. Like any other contracts, the provisions of a trust deed govern the relationship between parties. The legal structure of a trust agreement so provide that the rights of the bondholders are vested in the trustee through the trust agreement which confers upon the trustee rights to “represent the holder in dealing with the issuer and to enforce action on their collective behalf”. Thus, where the deed so provides that the trustee shall have...
6 Pages(1500 words)Essay


...Part A I want you to explain and illustrate what is meant by ‘blame culture compensation culture’, and the judges’ attitude to it, using the following sources: • Lord Templeman in CBS Songs Ltd v Amstrad Consumer Electronics plc [1988] AC 1013 • Rougier J in John Munroe (Acrylics) v London Fire and Civil Defence Authorities [1996] 4 All ER 318 • Judge LJ in Bradford-Smart v West Sussex County Council [2002] EWCA Civ 7 • Lord Slynn in Phelps v London Borough of Hillingdon [2000] 3 WLR 776 • Schiemann LJ om Vellino v Chief Constable of Greater Manchester Police [2002] 1 WLR 218 • Lord Hoffmann in Tomlinson v Congleton Borough Council [2004] 1 AC 46 Part B Professor Atiyah in his book The Damages Lottery identifies... A I want you to...
10 Pages(2500 words)Essay

Remedies Regarding The Project

...Analysis, Critique and recommendations/ Remedies regarding the project Executive summary EDS enters into aperformance contract with NMCI to sell services, applications and software at a fixed price. While making the estimates BNMCI underestimate the time of the project implementation and the resources required. This leads to a poor performance which calls for allocation of more time and resources. However, by the time they do this, project has already deviated from the intended course, and set goals can no longer be achieved in time. NMCI is partly to blame for it is slow in accepting the change and takes no corrective measures when EDS fails to deliver as expected. NMCI also ignores all the advices from other...
4 Pages(1000 words)Essay

Herbal Remedies

...Herbal medicine Lecturer The use of herbal medicine among African Americans and Italian Americans has become increasingly popular in the United States. However, the prevalence of herbal use among these two groups varies in different previous studies. There have been wide studies on the pattern of herbal use among racially diverse patients. This paper therefore seeks to describe the herbal use among African Americans and Italian Americans as well as their perceptions concerning the pattern of using herbal medicine. There are racial differences in the use of herbal among the African Americans and Italian Americans. Some of the factors that influence herbal use in America include ethnicity, history of family, immigrant, and herbal... medicine...
1 Pages(250 words)Assignment

Trust and trustees

...TRUST AND TRUSTEES: COHABITATION MARRIAGES LLB (Hons) Judith Dillingham PART A Introduction Traditionally, marriage has been viewed asthe preferred family portrait, providing ideal emotional and financial stability to family life. In this era of modernity, this perception is no longer valid since most families of today are very different. In today’s society, marriage is no longer considered important and this is prompting many couples to consider cohabitation as the best option rather than marriage.1 Over the past decade the rate of couples who choose to cohabite have increased tremendously. The major challenge with this phenomenon is that many are not aware of the fact that they need to get married to be entitled to...
16 Pages(4000 words)Essay

The English Law on Trusts the possession of the land under trust. The delegated tasks must be those which relate to the land. Section 26 (1) of the old law, LPA 1925, has been replaced by Section 10 of TOLATA 1996 which limits the power requiring consents to a transaction related to the land. In instances where the consent of more than two persons is needed by the disposition creating the trust, the consent of any two of them will be enough in favour of a purchaser from the trustees for as long as the trustees are not trustees of land held under charitable, ecclesiastical or public trusts. This legal condition however applies only to a purchaser. The duties of the trustees to...
10 Pages(2500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Remedies and Replacements of Trustees for FREE!

Contact Us