Joe Smith Has Just Died

question 52

Essay

Joe Smith has just died.Three months ago,when he knew that his death was impending,Joe established a spendthrift trust for the protection of his 16-year old son Bobby.The trust property consists mainly of $500,000 in investment securities.The trustee is Jack Purdy,a CPA.The trust agreement does not discuss the trust's termination.Can Jack invest trust assets differently than Joe invested them? For example,can he sell trust securities and buy others? Why or why not? Must Jack hire an investment professional to make trust investments?

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Definitions:

Leadership

The act of guiding or influencing a group towards achieving its goals.

Follower

An individual who supports and is guided by a leader or is part of a specific group or movement.

Norm Of Reciprocity

A social principle that suggests individuals respond to others in a manner that mirrors how they were treated.

Indebted

refers to the state of owing something, typically money, to another person or entity, resulting in a financial obligation.