1. Ted is a beneficiary of a trust. Jamie is the trustee. The trust property includes 100,000. One night at the pub, Jamie hears about an opportunity to buy shares in the local football club, from the club owner, Rebecca. She tells him that the football club is about to sign a star striker, which will definitely lead to their promotion, increasing the value of the club. Rebecca tells Jamie that the minimum investment is 50,000. Jamie explains he only has 20,000 of his own money, the rest only belongs to him as a trustee. Rebecca says this is the chance of a lifetime, and he should invest the money however he can. Jamie goes home and invests 20,000 of his own money, as well as 30,000 from the trust fund.

Jamie pays another 20,000 from the trust fund to his daughter, Dani. Dani knows that Jamie is a trustee. Dani uses 10,000 to pay off her mortgage and buys 10,000 worth of shares in a gourmet biscuit shop.

Unable to buy the star striker, the football club is relegated and loses value. Jamie tells Ted about the failed investment. Worried, Ted makes a will. Two of the provisions state:

a) Mae and Keely to get half of my collection of precious stones each.

b) 100,000 to Sam, to be distributed, at his discretion, amongst my loving family.

The shares in the gourmet biscuit shop have now doubled in value. Advise Ted as to any potential legal claims which he might be able to bring in respect of the reduced value of the trust fund, as well as the validity of the two dispositions of his will.