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Martin Is the Trustee of a Family Trust, Over Which

Question 3

Multiple Choice

Martin is the trustee of a family trust, over which he has powers of investment. The trust includes shares in a variety of companies and cash assets. The trust directs Martin to hold the property on trust for Wendy for life, and on Wendy's death for the Royal Society for the Protection of Birds.
Advise Martin as to which of the following statements are a false statement of his powers in relation the trust property:


A) Martin must keep the cash on bank deposit, but can change the other investments as he wishes.
B) Any proceeds received as dividends on shares must be reinvested in the trust fund.
C) Martin must have regard to keeping a balance between income generation and capital growth in reviewing the trust investments from time to time.
D) Martin can change the investments if a company is underperforming or to increase the range of investments.

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