Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Thursday, July 18, 2013

Dundee's Trustee May Have Breached Duty of Care

DundeeA trustee still owes a duty of care to the beneficiaries when delegating the power of investment. Australian trustees have a duty to invest cash held in trust. However, sometimes a trustee can do a poor job at investing trust funds. Crocodile Dundee's trustee did just that. Dundee's estate was missing $34 million from a Swiss account. The trustee had transferred the missing money to an investment manager who kept the trust funds in a bank account in Switzerland. Details about what exactly happened to the money are still unknown. By law investments are supposed to conform to the trust deed or the governing statute. Additionally, trustees should consider the beneficiaries and any other legal ramifications such as tax liabilities when investing. Double checking the decision with a financial advisor could help make sure that they are executing a prudent investment strategy and provide a check 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.


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