Soton Equity and Trusts - alastairhudson.com

Trevor paid the £2 million into bank account No.100 on 21 st July. Trevor already held £100,000 in that
account on trust for his children, Jeremy and Alan. On 22 nd July Trevor spent £150,000 from account
No.100 to acquire Gotech plc shares, which have since trebled in value. On 23 rd July Trevor spent
£50,000 from account No.100 to acquire Static plc shares which have not changed in value. On 24 th
July Trevor spent the remaining money on a large house in the South of France which was destroyed in
a freak forest fire before Trevor had insured it and which is now worthless.
Trevor’s children, both of whom are aged 18 or over, were informed on 1 st March 2008 by Trevor that
their trust fund was now worth £450,000, since the increase in value of the Gotech plc shares. In
reliance on this news, Jeremy entered into a contract to acquire £225,000 worth of recording
equipment with which to start his intended career as a pop music producer. Also in reliance on the
same news, Alan made plans to go on a luxury round-the-world cruise costing £20,000, but he has not
yet spent any money on that cruise. Alan has, however, spent £10,000 refitting the bathroom in his flat
in reliance on this anticipated windfall.
Advise the beneficiaries of the Brand family trust.
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