Question

Archibald Bruce died in September 2020. Under the terms of his Will, he established two trusts to provide for certain relatives from his parents' families. The 'Carolean Family Trust', in memory of his late mother, Delilah Charles, and the 'Bruce Family Trust', in memory of his late father, Edward Bruce. The Carolean Family Trust was for the benefit of his aunt, Francine Charles, for life, with remainder to her children, Gregory (aged 22) and Hannah (aged 18), equally. The trustee of the Carolean Family Trust is Ivan Janus, an accountant. The Bruce Family Trust is for Kenneth (aged 16), Lydia (aged 22), and Morgan (aged 24), in equal shares, conditional on them reaching the age of 25. The trustees of the Bruce Family Trust are Neville Oliver, a school teacher, and Pamela Queck, a chef. Other than a restriction in the Carolean Family Trust respecting an antique pocket watch, there are no express powers of investment or maintenance and advancement in either the Carolean Family Trust or the Bruce Family Trust.

In August 2023, Gregory asked for an advancement of 50,000 to start his own business. Gregory has recently completed a MSc degree in Computer Science, graduating with a distinction. As part of the MSc, Gregory completed a dissertation on commercialising applications ('apps') for mobile gaming. Gregory has experience in this area having developed two apps as part of his BSc in Computing, and launched them on the Apple 'App Store' and 'Google Play'. Having considered Gregory's experience and qualifications, Ivan advanced the funds to Gregory. Gregory has spent all the advancement having found appropriate premises and purchased equipment. He has already launched an app which he had in development. He is also working on a partnership with gaming company, SkillJamGet, to develop two of his ideas into apps for SkillJamGet to launch.

In September 2023, in breach of trust, Ivan withdrew 20,000 from the Carolean Family Trust and deposited it into his personal bank current account ('his account'). His account had a balance of 5,000 before the deposit. In October 2023, Ivan withdrew 15,000 from his account and used it to purchase a painting. Last month, the painting was revealed to be a previously unknown painting by Alfred Sisley, and it is now valued at 300,000.

In November 2023, Ivan arranged for the sale of an antique pocket watch belonging to the Carolean Family Trust. The trust fund stipulated that the antique pocket watch should not be sold. Richard Simpson, retained solicitor to the Carolean Family Trust, on Ivan's instructions, drafted the contract of sale for the antique pocket watch. The antique pocket watch was sold to a Swiss collector for 18,000. The Swiss collector had no knowledge that the antique pocket watch should not have been sold. When the Swiss collector paid the purchase price, Ivan used 17,000 to pay off his credit card, and paid the other 1,000 to Richard Simpson as his fees for drafting the contract.

In December 2023, Ivan removed the remaining 10,000 from his account and spent it on five nights at the Savoy with his partner. In February 2024, Ivan Janus was declared bankrupt with personal debts in excess of 345,000.

While Pamela was travelling around France looking for suppliers for her restaurant, she identified a business which supplied discounted truffles across Europe and the rest of the world. Cochon Truffier SARL has been operating for 20 years posting profits for each year of its operation. In 2023, Pamela insisted to Neville that it was an ideal form of investment, and Neville agreed. The trustees used 110,000 from the trust fund to purchase a 14 per cent stake in the company. Last year, the company posted disappointing profits because of increased competition. In January this year, there were rumours that it was experiencing significant financial difficulties. The 14 per cent stake is now worth around 48,000.

Morgan is a keen actor, having had a few small parts in stage shows and TV programmes since the age of 15. In 2022, he had a 12-month contract to play a major character in a soap opera, for which he was nominated for an award. He attended the Royal Academy of Dramatic Arts ('RADA') graduating with a BA (Hons) in Acting and a MA in Theatre Lab. For the last few years, he has been attending the Edinburgh Fringe Festival with a new show. In 2023, he requested 20,000 by way of advancement from the trustees to take his most recent show, 'The Morgan Bruce Experience', which is a new comedy show which Morgan has written, to the Ediburgh Fringe Festival. The trustees agreed to the advancement. Pamela said that Morgan and his fellow actors could use her three-bedroom apartment in Edinburgh for the duration of the Festival for 50 per cent of the usual rent. Morgan agreed, and paid Pamela 3,000 for the month as rent. This is less than the typical short-term let for accommodation in Edinburgh during the Edinburgh Fringe Festival. Pamela used the money from the rent to purchase a small antique vase, which has doubled in value while she has owned it.

Morgan's show received poor reviews, and he lost all the money he had been advanced to put on the show. Since the show ended in September 2023, Morgan has been depressed, and in February 2024, Morgan committed suicide.

Advise on:

• a. The legal basis on which Gregory could seek the advancement of 50,000 from the Carolean Family Trust and whether this advancement was lawful.
• b. How the funds removed from the Carolean Family Trust in September 2023 might be recovered by the beneficiaries.
• c. What action might be taken in respect of the sale of the antique pocket watch to the Swiss collector.
• d. Whether the purchase of the shareholding in Cochon Truffier SARL was lawful and, if not, what action might be taken in respect of it.
• e. Whether the advancement of funds to Morgan was lawful, and whether action might be taken against either of the trustees.