Nathan is a wealthy investor who is entering into his 'retirement phase'. He is upset with how modern Australia is progressing and wishes to set up a strategic litigation fund in order to fund the legal cases of individuals he thinks have made significant contributions to society. Nathan has heard of a woman - Frances - who he thinks has been unfairly vilified by the media. Nathan decides that he wants to fund defamation proceedings for Frances. Nathan decides that he wants to set up a trust to act as the funding vehicle for Frances' legal fees. Nathan signs a document which states the following: I (Nathan) hold $1,000,000 (1 million dollars) on trust for Frances whilst she fights the mainstream media! I am to pay Frances $25,000 a month from the funds held on trust. Nathan transfers the $1m into a new bank account that he holds with the Commonwealth Bank, and titles the account 'Frances' Fighting Fund'.

For the following parts of the question, assume that the trust was valid. The bank account that Nathan is holding the money in only accrues interest at a rate of 1.0% per annum. Nathan is considering using the trust funds to buy shares in the initial public offering of a new company, Dumas Pty Ltd. Nathan has read Dumas' marketing material and thinks that Dumas will be making a lot of money (and hence the value of the potential shareholding will increase). Advise Nathan about his obligations relating to the investment of trust funds