Richard is the trustee of the Williams family Trust. Last year he directed Steve a broker, to purchase an unauthorized investment for the Trust. Both Richard and Steve realized that the investment was unauthorized, but both thought the trust investment clause was too restrictive. Furthermore, David a solicitor, advised Richard that so long he was taking risk in the best interest of the beneficiaries, he would be protected by the trustee exemption clause in the trust instrument. He also advised Steve that it would be very unlikely for the court not to exonerate him as well even thought not being a trustee, he did not have a specific protection of the clause. Richard and Steve proceed with the investment in good faith, Steve taking a $10,000 brokerage fee. The investment which was initially worth US$100,000 is now worth US$ 50,000 after just 3 weeks from the date of the unauthorized change.

Advise the beneficiaries thoroughly.