A trustee still owes a duty of care to thebeneficiaries when delegating the power of investment. Australian trustees havea duty to invest cash held in trust. However, sometimes a trustee can do a poorjob at investing trust funds. Crocodile Dundee’s trustee did just that.Dundee’s estate was missing $34 million from a Swiss account. The trusteehad transferred the missing money to an investment manager who kept the trust fundsin a bank account in Switzerland. Details about what exactly happened to themoney are still unknown. By law investments are supposed to conform to thetrust deed or the governing statute. Additionally, trustees should consider thebeneficiaries and any other legal ramifications such as tax liabilities wheninvesting. Double checking the decision with a financial advisor could helpmake sure that they are executing a prudent investment strategy and provide acheck on the investor.
See Bernadette Carey, Colin Biggers & Paisley, Australia: Trustees Must Take Care Investing Trust Funds: A From the Life of Crocodile Dundee, Mondaq, Jul. 9, 2013.
