Accounts under trustee-trusts laws and accounts, Financial Accounting

Assignment Help:

ACCOUNTS UNDER TRUSTEE

(a) Authorised investments

The investments which trustees are permitted to hold may be specifically stated in the will or deed constituting the settlement. Where the will or deed is silent on the matter, the authorised investments are as provided by statute. The Trustee lays down the scope for trustees' investments but has also introduced safeguards to prevent excessive losses to trust funds from unsuitable investments.

(b) Division of the trust:

The safeguards consist in the division of the trust funds into portions. Before this division takes place, the investments are revalued in order to determine the total value of the funds as at the date of division. Any investments which are acquired or retained under a specific power in the will or settlement are designated as special range property and are kept quite separate from the other investments. 

(c) Fixed Interest Securities: no advice in writing is required before an investment in fixed interest securities is made.
 
1.    Government Securities.
2.    Treasury Bills.
3.    Fixed interest securities guaranteed by the Government

(d) Wider-range Investments:
(requiring advice in writing from a properly qualified person)
 
Quoted shares of a Kenya company with a paid-up capital of not less than Shs10m and has paid dividends on all issued capital for the past five years.

(e) Dealing with changes in the trust:
 
Profits or losses on disposal of investments should be treated as belonging to that part of the fund out of which they accrued. If not applicable to either part, the accrual must be divided between each fund.


Related Discussions:- Accounts under trustee-trusts laws and accounts

Calculate the claim under insurance policy, Calculate the claim under insur...

Calculate the claim under insurance policy: 1) What do policy limits of 200/300/100 on an automobile insurance policy mean?Your automobile insurance policy contains policy lim

Report on financial statements, At one time, Circle K was the second-larges...

At one time, Circle K was the second-largest convenience store chain in the United States. At its peak, Circle K operated 4,685 stores in 32 states. Circle K's rapid expansion was

Ticket Id - EM131058373M27, hello, i have got my answer, but i don''t know ...

hello, i have got my answer, but i don''t know the PART C why doesn''t calculate "working capital: 60000"?????? can not find match number in the solution table

Case law & study, I need help with a mini accounting project. Here is a lin...

I need help with a mini accounting project. Here is a link to the questions I need answers to. Read the questions and instructions and if you think you can complete the case within

Asking price, The price stages are that at which sellers recruit securities...

The price stages are that at which sellers recruit securities to borrowers.

Hsa advantages , A HEALTH SAVINGS ACCOUNT AT FRONTLINE PR Susan Berry...

A HEALTH SAVINGS ACCOUNT AT FRONTLINE PR Susan Berry just returned from a national conference on compensation and benefits where she attended a session on Health Savings Accou

Resulting trusts-trusts laws and accounts, Resulting trusts Resulting t...

Resulting trusts Resulting trusts occur where equity regards the property which is held by a trustee as belonging in equity to the person who transferred it to, or caused it to

Calculate present value-current yield-interest rates bonds, Present Value o...

Present Value of a Bond 1. Assume that you wish to purchase a 20 year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40.  If you require a

What is comparability, What is Comparability This quality would en...

What is Comparability This quality would enable users to identify changes in the business over time (for instance, trend in sales revenue over the past five years). It wou

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd