Other possible areas

Question 1

Identify and explain the key client-specific areas that apply to Nick and Shirin that you should consider when assessing their CFL

Answer 1

• They have an emergency fund and £93,000 invested in ISA so they are able to tolerate losses
• Both earn good salaries
• High ATR
• They have surplus income each month of £1,500
• They have no liabilities beyond the mortgage
• They have two young children / financial dependents
• potential inheritances
• Long time frame to retirement
• They are currently in good health

Question 2

What are the duties of a trustee?

Answer 2

• to hold trust property and administer it for the benefit of the beneficiaries
• Hold the title documents to any trust property
• Everything they do must be for benefit of beneficiaries
• Invest any cash wisely or pay it out to beneficiary immediately
• take account of the standard investment criteria
• Monitor investments
• Avoid conflicts of interest
• use utmost diligence
• Keep proper accounts