EQUITY AND TRUSTS PROBLEM QUESTION - IRAC NEEDED
In February 2021. Jim Bell decided he would travel the world (as soon as it was safe to do so). He booked a ticket on an exclusive cruise ship and told all of his friends and neighbours about it. As he was quite a nervous traveller, and this would be the longest trip he had ever taken, he decided to execute a will with the following provisions: (i) 50,000 to my good friend Martin Goodman in full confidence that he will hold this money on trust for his two sons. Adam and Jonny, (ii) Half of my antique plate collection is to be held on trust for Nellie Buller, 100,000 is to be held on trust by Jackie Goodman. Jackie can make, at her absolute discretion, payments to or for the benefit of any nice neighbour who lives on the same street as me; (iv) My two precious marbles are to go to Lou Morris and Val Lewis; Val is to have whichever marble Lou does not want; (v) 25,000 is to be held on trust and used for the care and maintenance of my dogs Wilson and Milson for the period of 21 years from the date of my death or until the death of the last of my dogs, if earlier. A month later, Jim decided to drive to a local beach so he could look at the sea. He invited Lou Morris to go with him. This was not a good idea: the weather was terrible and Lou kept running into the sea. Jim was worried. He phoned his solicitor and said: (vi) I'm holding all of my shares on trust for Jackie Goodman; (vii) I'm holding my house on trust for Adam and Jonny Goodman; (viii) I'm transferring all of my interest in the Antoinette Trust (an existing trust) to Martin Goodman Jim quickly wrote on a piece of paper 'Holding my house on trust for Adam and Jonny' and put the paper safely in the car. Unfortunately, just as Jim was locking the car, Lou ran into the sea.. again. Jim ran into the sea to help, but a giant whale suddenly appeared and swallowed them up. Both men died instantly. Advise the executors. In February 2021. Jim Bell decided he would travel the world (as soon as it was safe to do so). He booked a ticket on an exclusive cruise ship and told all of his friends and neighbours about it. As he was quite a nervous traveller, and this would be the longest trip he had ever taken, he decided to execute a will with the following provisions: (i) 50,000 to my good friend Martin Goodman in full confidence that he will hold this money on trust for his two sons. Adam and Jonny, (ii) Half of my antique plate collection is to be held on trust for Nellie Buller, 100,000 is to be held on trust by Jackie Goodman. Jackie can make, at her absolute discretion, payments to or for the benefit of any nice neighbour who lives on the same street as me; (iv) My two precious marbles are to go to Lou Morris and Val Lewis; Val is to have whichever marble Lou does not want; (v) 25,000 is to be held on trust and used for the care and maintenance of my dogs Wilson and Milson for the period of 21 years from the date of my death or until the death of the last of my dogs, if earlier. A month later, Jim decided to drive to a local beach so he could look at the sea. He invited Lou Morris to go with him. This was not a good idea: the weather was terrible and Lou kept running into the sea. Jim was worried. He phoned his solicitor and said: (vi) I'm holding all of my shares on trust for Jackie Goodman; (vii) I'm holding my house on trust for Adam and Jonny Goodman; (viii) I'm transferring all of my interest in the Antoinette Trust (an existing trust) to Martin Goodman Jim quickly wrote on a piece of paper 'Holding my house on trust for Adam and Jonny' and put the paper safely in the car. Unfortunately, just as Jim was locking the car, Lou ran into the sea.. again. Jim ran into the sea to help, but a giant whale suddenly appeared and swallowed them up. Both men died instantly. Advise the executors
