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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. The remainder of the property is to be divided into two equal parts, the fixed interest and the wider range.
The fixed interest part of the trust must contain fixed interest securities only. The wider range part of the fund may contain either fixed interest or wider-range investments. When special range property is realised, the proceeds must be invested equally in fixed interest and wider-range securities.
The following data has been taken from the management accounting reports from Spinnaker Sales. Div A -Income from operations $1,800,000 Total service department charges $1,600,000.
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1.The debtor retains ownership, but loses possession and control of his property
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