Trusts Law Assignment.
It must be completed in no more than 2000 words, according to english, and no other law
Part 1.
Indiana died leaving his property to his trustees, Kent and Louisa, to hold on trust for his children, Mary and Nev. His estate included a business, Divers Unlimited, which provides deep sea diving services to oil rigs and shipyards. The day to day administration of the business is carried out by Okie. Kent and Louisa, who are both self-employed divers, told Okie that they could be consulted for advice whenever necessary.
Okie rang Kent in a panic when one of Divers Unlimited’s employees, Penn, broke his arm. Penn was due to be carrying out some work for the Rhode Shipyard the following week and no-one else with welding skills was available. Kent offered to become a temporary employee of Divers Unlimited to fulfil the contract. He received a payment of £5,000 which he invested in shares now worth £6,000.
The Rhode Shipyard contacted Kent two months later to offer him some work in his personal capacity, saying that they were not prepared to use Divers Unlimited as its charges were too high. Kent accepted and was paid £4,000. Kent was nearly killed and the event was reported in the national press. On his return Mary and Nev insisted on hearing all the details and told him that they were very impressed and he had obviously earned every penny he received.
Before his untimely death Indiana had been considering expanding the business into providing divers to the salvage industry but had made no final decision. A telephone call to Divers Unlimited from the Texas Salvage Company requesting diving services was answered by Louisa while Okie was at lunch. Louisa told them that Divers Unlimited did not provide divers for salvage purposes but offered to take the job personally. She was paid £10,000.
Louisa was approached by Utah, a representative of a diving equipment supplier. In return for a payment of £10,000 Louisa persuaded Okie to order from Utah’s employers rather than Diving Unlimited’s previous suppliers. The £10,000 was successfully invested in shares now worth £15,000.
Discuss.
Part 2.
Mary and Nev decided to invest some of their income from the shipyard in some shares. The shares were actually purchased in the name of Mary’s husband, John, for tax reasons. Mary and Nev each contributed £25,000 to the purchase of the shares. John has recently left Mary and moved in with Lucy. He has sold the shares for £60,000 to Victor and dealt with the proceeds of sale as follows:
(a) He used £10,000 to pay off a loan he had taken out to purchase a car.
(b) He gave £5,000 to his daughter, Wendy, to help her with the costs of studying at university. Wendy paid this into her bank account where she already had £1,000. Wendy has since withdrawn sums totalling £2,000 for the costs of a trip to Australia to see her boyfriend.
(c) He paid £25,000 into her bank account where he already had £25,000. He withdrew £25,000 and put it towards the purchase, with Lucy, of a successful restaurant business.
Consider any proprietary claims and remedies that may be available to Mary and Nev.
