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problem1. John is an employee XYZ Ltd, a trust company set up by Chovrina, the settlor.  Chovrina has been advised by company’s tax consultant George that she ought to set up several trusts.  Chovrina is unhappy with the idea of losing control of her assets in this way.  Chovrina will also act as trustee.

describe to Chovrina:

(a) The purpose of a letter of wishes.

(b) Why it is important to maintain proper records and minutes and what dangers could arise if such records are not properly kept?

problem2. Distinguish between a settlor and a protector in a trust, highlighting their characteristics, duties and powers.

problem3. describe what is meant by the three trust certainties.

problem4. describe why a custodian trustee may be more appropriate than an individual to act as trustee.

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