EQUITY AND TRUSTS

Equity and Trusts

(A)According to the law of power of advancement, which is statutory or discretional, the trustees can grant any amount of money from the trust to the beneficiaries of the trust. There are certain conditions. These conditions include the fact that the amount of money can be advanced to the beneficiary, only if the money is being taken from the trust for his own personal use, and will also benefit the same person, i.e., the beneficiary of the trust.

Gerry is about to go on a world travelling holiday for two years. Tom and Babra have said that he can borrow money or have emergency payments until the trust comes to an end when Margot reaches 30. In this case, the beneficiaries of the trust are, Gerry and Margot, who are siblings and the grand childrens of Alexis Blunden, who was the original owner of the property. Moreover, the amount of money that Gerry wants to borrow, is for his personal use, as he wants to go on a world travelling holiday. This means that, the amount of money that will be advanced to Gerry will benefit Gerry, who is one of the beneficiaries of the trust. Therefore, looking at this point and the fact presented by the law of power of advancement, which is statutory or discretional, it can be said that the money can and should be advanced to Gerry, without any conditions being applied on it. He can borrow, any amount of money from the trustees of the trust, as long as, he is borrowing the money for his personal use. And till the amount being borrowed is going to benefit him.

The other aspect of which is given in this question is that Gerry avails emergency payments until the trust comes to an end when Margot reaches 30. But as the law states, Gerry doesnot need to take any emergency pauments, as he can borrow any amount of money from the trust for his personal use (Mitchell, Hayton, 2005).

Therefore, it can be suggested to Gerry that he can borrow the money from the trust, without any concern or issue (Mitchell, Hayton, 2005).

It transpires that Tom worked as a management Consultant for Woolco plc from 1995 until its demise.

As was stated in the case, Tom works full time as a chartered accountant, which shows the fact that Tom is by profession a Chartered Accountant. But the other aspect that has been brought forward in this question is that, he also worked as a management consultant for Woolco plc from the year 1995 until the time, it actually had its demise. This brings forward the question that, when Tom was by profession a chartered accountant, then why was he working as a management consultant for Woolco plc. This also brings forward another aspect in the case, that why did Woolco go towards its demise. To answer these questions, we first need to look at the fact that a chartered accountant can cheat with the organization very easily ...