a) Duties of a Trustee with regards to investments:

• Duty to invest prudently: Trustees must act as a “prudent man of business” (Learoyd v Whiteley (1887) 12 App Cas 727), diversifying to balance risk and return. In Ghana, this aligns with common law and BoG’s investment guidelines for trust funds.
• Duty to consider suitability: Investments must suit trust objectives and beneficiaries’ needs, e.g., income for life tenants vs. growth for remaindermen.
• Duty to obtain advice: Unless expert, seek professional advice (Trustee Act 2000 principles, applicable via common law in Ghana), reviewing periodically.
• Duty to monitor and review: Regularly assess performance, adjusting as needed to avoid losses.
• Duty to avoid conflicts: No self-dealing; invest in authorized assets only.
• Practical example: At GCB Bank managing trusts post-DDEP, trustees diversified into government bonds and equities, complying with BoG’s Liquidity Risk Management Guidelines to ensure sustainability.

b) A testamentary (Will) trust is a trust created by a will, taking effect upon the testator’s death. It disposes of property to trustees for beneficiaries, requiring formalities under Ghana’s Wills Act, 1971 (Act 360). Unlike inter vivos trusts, it’s revocable until death. Example: A banker wills assets to trustees for minors, ensuring managed distribution, common in estate planning to minimize inheritance taxes and disputes.

(Marks allocation: 12 marks for part a (3 per duty with explanation); 8 marks for part b definition and example.)