I believe you are over thinking this olivier.
I believe oliver needs to change his name to buzzkill or funpolice.
It doesn’t matter if it is kids, grandkids distant cousins, shite…it can even be Lionna Helmsley’s dog; whether the trustee engages in bondage with them, or takes long walks on the beach. The trust has two beneficiaries: income beneficiary and principal remainderman. And yes, the trust should be managed to give balance to the competing interests (income bene wants income, principal remainderman wants growth).
So this might be a crazy question but what does the book say the answer is?
the real problem is that the investment is not suitable for his client (the widow).
Dapper425 Wrote: ------------------------------------------------------- > So this might be a crazy question but what does > the book say the answer is? HAHAHA, awesome! YO! Mumu - throw us a frickin’ bone here…can we get an answer?
I thought we did … answer is A I saw this same question in Qbank last weekend.
wow…this digressed nicely earlier. lol
sorry people…i’m in a different time zone…so when i posted this questions is was close to midnight…and I crashed soon after : the correct answer is A. … so good job all of you who said A… however…like some people here…zimzim I believe…mentioned that it could be B…I had picked B simply because in the questions is doesn’t clearly imply that he chose his investment strategy TO BENEFIT the grandchildren in particular…yes he deviated from the requirement of maintaing current income…however the motive is not clear… anyway…as much as I hope and pray these kinda questions won’t be on the exam…I"M SURE they will…siiighh!
There are no competing interest here, let s assume there are no grandchildren, when the grandma die, her possession will go to the government. Should Xavier consider the government now as a beneficiary and trade for the government interest? He should only consider the grandchildren if the grandma stated that leaving money is important to her (or leaving money to government is important to her, which we shouldn t assume). So because there is only one benificiary, using soft dollar to pay for sex with grandma is fine because it is for the sole benificiary and he doesn t have to disclose this to the grandkids. ***** Quick adjustment The grandma is the owner of the softdollar, so if he s paying her with the softdollar for having sex, it s like taking money from her wallet. He should pay with his own money. If SHE is paying him to have sex, then it s fine, she owns the soft dollar and can do whatever she please with. (but you should also see knowledge of the law, conduct as a cfa chartholder, etc…)
Troobs Wrote: ------------------------------------------------------- > There are no competing interest here, let s assume > there are no grandchildren, when the grandma die, > her possession will go to the government. Should > Xavier consider the government now as a > beneficiary and trade for the government > interest? I’d suggest you review some of the trust material in SS1/2, because your assertion that there are no competing interests is dead wrong, especially when combined with the info in the vignette.