Law Case Study Example | Topics and Well Written Essays - 1250 words

Law - Case Study Example Had that been the case, the local animal charity should have either received the funds, or there should have been an agreement drawn up with that charity as to how the funds in the Fido Trust would be administered for their benefit. Instead, it appears clear that John and Sue intended to secure personal gain from their investment in the stock market. This was a clear conflict of interest, not only on Sue’s part because a relative was involved, but also on the part of John, who consented to such an unprofitable loan. The weight of the evidence is that placing the other half of the Fido Trust into the stock market was also intended to benefit John and Sue, rather than to benefit Mike’s dog and cat, as otherwise some arrangement would have been made with either the local animal charity or some other animal care service via using the interest earned on the Fido Trust solely for the proper care of the animals, as Mike intended. Using the funds otherwise would be a serious fr aud, perhaps more serious for John as a solicitor who would know the requirements of serving as a Trustee more than for Sue, a policewoman; but it still appears that Sue should have known that the purpose of the Fido Trust was violated. Compounding John’s abuse of the trust placed in him by Mike, we are told that John exercised his power of appointment over the residue of Mike’s estate in favor of himself, and then persuaded Mike’s son Ron, at 18 years of age, to surrender his life interest in the residual estate to John, a proposal which Ron should have strongly rejected. 3 Now, as to advising Ron, I would tell him the following: Ron, your interests have been grossly violated by John's handling of your father's estate