Trustees of a family trust had in the past taken advice from an adviser who had little trust knowledge and invested the funds in a selection of funds paying income to the life interest.
The adviser had subsequently left the industry and the trustees had not done anything further. When I reviewed the investment for the trustees the following was discovered:
1. The trustees were taking far more risk than they thought they were.
2. The funds were very expensive.
3. The life interest was being paid a higher income than they should have to the disadvantage of the remaindermen.
4. The investments had not been regularly reviewed as the trustees were obliged to do.
The trustees were horrified to discover they would be personally legally liable for all the above errors, needless to say the investments were amended to rectify the situation very quickly to a huge relief to all concerned.