FNSTPB504 Apply Legal Principles In Corporations And Trust Law - Law Assignment Help

Question 1

Please define an association. Are members of an association liable for the debts of the association? Why or why not?

Question 2

David operates a basketball club for underprivileged teenagers in an inner-city suburb. Each player pays a membership fee, or a service blub pays it. The treasurer disappears with all the funds, leaving the club with debts of $12,000. Who is liable for the debts? Would your answer be different if the club was an incorporated association? If so, how and Why?

Question 3

List advantages and disadvantages of becoming an incorporated association.

Question 4

llan Megon is married and has 2 teenager sons. He has dedicated the past ten years to his sole-trader computer-software businesses that specialises in software to control patternmaking equipment. Allan realises that his long-term success now depends on attracting and keeping the right employees, and financial security for his family members. Advice Allan which business structure would best serve his purposes. Your answer should include 3 business structures – company, trust and partnership.

Question 5

Adam has been appointed trustee of Amy's testamentary express trust. The trust document states that the trust applies to “… most of my estate, including my shares and two-thirds of my antique collection.” It goes on to state that “half of the two-thirds of the antique collection is to be held for the grandchildren that loved me most”. Can Adam fulfil the terms of Amy's trust? Give reasons for your answer.

Question 6

Adele is the trustee of a trading trust and enters into a contract with a service on behalf of the trust. The business of the trading trust is not financially sound and when the service is complete there are insufficient trust funds to pay the debt. Giving reasons for your answer, explain who will be liable to pay the outstanding debt.

Question 7

The trust document confers on the trustee discretion to select who in the designated class of potential beneficiaries is to receive any benefit and to decide the amount of any benefit to be paid. (Please provide a brief explanation of the trust)

Question 8

The trust creates and grants to each beneficiary proprietary interests in the trust property or the income derived from that property. The trustee has no discretion regarding distribution of income and property. (Please provide a brief explanation of the trust)

Question 9

The trust creates and grants to each beneficiary a fixed equitable interest in the capital and income of the trust calculated by reference to the proportion of units each beneficiary holds in relation to the total number of units issued. (Please provide a brief explanation of the trust)

Question 10

What is the meaning of the term ‘dual ownership’ in relation to a trust?

Question 11

List and briefly explain the type of express trust.

Question 12

What would be the most beneficial type of express trust for Jennifer's situation?

Question 13

Who can be the Trustee of Jennifer’s Trust? She also likes to know what the Trustee’s duties are.

Question 14

Tommy is 47 and has been working full time for 26 years. During that time, he has cocontributed to his superannuation and his fund balance is currently $460,000. Tragically, Tommy has been diagnosed with a terminal illness and has less than 6 months to live. Is Tommy able to have access to his superannuation? Why and why not?

Question 15

What do you think are the advantages or disadvantages of being a member in a defined benefit fund? Why are defined benefit funds becoming increasingly uncommon?

Question 16

The federal government has developed MySuper superannuation to replace existing default funds. What are the improvements offered by MySuper on previous default superannuation products?

Question 17

What are the advantages and disadvantages of a Self-Managed Superannuation Fund (SMSF)?

Question 18

What are the major reporting and record keeping obligations in a Self-Managed Superannuation Fund (SMSF)?

Question 19

Why do you think SMSFs are so popular? (Note: this question might require the TPB students to conduct individual website research)