What steps Sophia can take in response to the misappropriation of the monies from the Foundations Trust
Trusts and Equitable Wrongs
In 2015, to plan for the future, Sophia set up a trust, of which she is the sole beneficiary. The assets under her trust (called Foundations Trust) are held by her asset manager Kevin, as trustee.
Unbeknown to Sophia, last week Kevin removed £25,000 of trust monies and placed it into his ABC Bank current account which, at the time, also contained £25,000 of Kevin’s own money. The next day, Kevin withdrew £30,000 from his ABC current account and donated it to a local charity, City Homeless Shelter. The charity has already spent the money on replacing all of the windows in their premises.
Advise Sophia on the following matters:
Whether the purported trusts at point 1 and 2 above are valid, enforceable and fully constituted (including steps Sophia would need to take in order to address any deficiencies you identify); and
What steps Sophia can take in response to the misappropriation of the monies from the Foundations Trust.