Answer The Following Question
Barack is instructing his trustees as to the following settlements of property. He seeks your advice. Where amounts of money are mentioned, you should take it for granted that each amount mentioned has been segregated:
(i) £50,000 so that my trustees shall divide it equally amongst my dearest relatives.
(iii) My shares in Butterfly Bakers Plc to be held on trust and given to my son Jimmy and his fiancée Samantha absolutely when they are married.
(iv) £100,000 to be held on trust for the Northampton Rappers Society.
(v) £1 million to be taken out of my ‘Rainy Day’ trust fund to be paid to my dear friend Jane in support of her struggling business.
Before instructing his trustees, Barack and Beverly had already discussed exchanging the equitable interests in the shares they owned and agreed to do so. They therefore documented this in the form of a written contract whereby Barack and Beverly agreed to exchange their equitable interests under the two trusts with one another.
Jimmy and Samantha’s wedding was cancelled because Jimmy confessed to a long-standing affair he was having with another woman. Since then, HMRC has been inquiring about who the beneficial/equitable owner(s) of the shares in Butterfly Bakers Plc are so its dividends can be taxed accordingly.
The Northampton Rappers Society operates on land leased to it for a period of 21 years. The Society has a constitution which sets out how the Society’s assets are to be used. The constitution gives the executive committee the authority to determine how funds are applied and does not allow the members to have any say in such matters.
In following Barack’s instructions to pay £1 million to his friend Jane, his bank mistakenly made the payment twice. This means that Jane received £2 million. Jane was immediately made aware of the mistaken payment and was asked to return the £1 million extra which was paid in error. Unfortunately, Jane’s business went into insolvency before she could facilitate the payment. Her creditors are now arguing that the £1 million forms part of Jane’s liquid assets, and that it should therefore be used to satisfy their claims.
Type of service: Academic Paper Writing
Type of assignment: Essay
Number of Sources: 15
Academic level: Master’s
Paper Format: OSCOLA
Line spacing: Single
Language style: UK English