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In Which of the Following Situations Is It Least Likely

Question 4

Multiple Choice

In which of the following situations is it least likely that property of the original trust could be traced by the beneficiaries? (Think carefully before answering) .


A) Reginald, as trustee, withdrew £60,000 from a trust and put it into his own bank account, which contained £10,000. Reginald spent £10,000 on a world cruise.
B) Katrina withdrew £2,000 in breach of trust, and put it in her bank account, containing £1,000. Katrina spent £3,000 on a luxury weekend in Paris. She has since deposited a further £2,000 into the account.
C) Harold, as trustee, withdrew £4,000 from a trust and put it into his own bank account, which contained £6,000. Harold bought a second-hand Harley Davison motorcycle for £4,000 and then spent the remainder of the bank account on a coast-to-coast biking holiday in the United States of America.
D) Melissa took £5,000 in breach of trust from the trust, and placed it into the current account of another trust for which she was a trustee. The current account contained £5,000. Melissa then took £5,000 from the current account and used it to pay her medical bills.

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