This lecture (recorded live) considers the law of tracing and applies it to the following question:
“In January of this year, Harold, a trustee, paid £2,000 into his private account (the balance then was £500). The sum paid in to his account represented the proceeds of sale of assets belonging to the Church of Belvedere, of which he was a trustee. The following day he withdrew £1,800 and used it to pay buy shares in Moneyco plc for his personal benefit.
In February of this year, he paid in to his account £1,000 representing the half-yearly dividends of trustees’ stock belonging to the estate of his father, Charles. Harold was the sole trustee of this estate.
In March of this year, he withdrew £1,000 and spent it on his own affairs.
In April of this year, he paid in to the account £100 of his own money. Shortly afterwards, Harold became bankrupt.
The value of the shares in Moneyco plc have increased and they are now worth £4,000.
Explain the rights, if any, of Harold’s trustee in bankruptcy and of the beneficiaries of the two trusts to the balance in Harold’s bank account and the Moneyco plc shares”
Lecturer: Mohamed Ramjohn
Duration: 48 minutes (approx)
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More lectures on the Law of Trusts
- Liability of third parties
- Charitable Trusts
- Trusts of the family home
- Constructive trusts
- Secret trusts
- Private purpose trusts
- Tracing Q&A
- Creation of express trusts
- Unincorporated associations
- Resulting trusts
- Constitution of a trust Q&A
- Exceptions to the rule that equity will not assist a volunteer.
- Constitution of an express trust