A trustee steals £50,000 from a trust. She transfers £20,000 of the money to her daughter who uses the money to pay off her credit card debts and the remaining £30,000 to her son who uses the money as a deposit towards a flat. The daughter and son know their mother stole the trust money.
The trustee and her son are facing bankruptcy (insolvency) proceedings.
Which of the following claims is most likely to give the beneficiaries a positive outcome?

Question

A trustee steals £50,000 from a trust. She transfers £20,000 of the money to her daughter who uses the money to pay off her credit card debts and the remaining £30,000 to her son who uses the money as a deposit towards a flat. The daughter and son know their mother stole the trust money. 
 The trustee and her son are facing bankruptcy (insolvency) proceedings. 
 Which of the following claims is most likely to give the beneficiaries a positive outcome?

Answer

A proprietary claim to recover trust property from both the daughter and the son.

Answer

A claim for knowing receipt against the daughter and a claim for dishonest assistance against the son.

Answer

A proprietary claim against the daughter and a claim for knowing receipt against the son.

Answer

A claim for knowing receipt against the daughter and a proprietary claim against the son.

Answer

A claim for knowing receipt against both the daughter and the son.

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A trustee steals £50,000 from a trust. She transfers £20,000 of the money to her...

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