INTERNATIONAL COMPARITIVE TRUST LAW

International Comparitive Trust Law

International Comparitive Trust Law

Question 1: Trust to Benefit Ahmed for his Life

The theory of comparative advantage is perhaps the most important concept in international trade theory. It is also one of the most commonly misunderstood principles. There is a popular story told amongst economists that once when an economics skeptic asked Paul Samuelson (a Nobel laureate in economics) to provide a meaningful and non-trivial result from the economics discipline, Samuelson quickly responded with, "comparative advantage."

Referring to Mr. Ahmed who owns his own business, a publishing company, and the portfolio of investments that include a large house in a fashionable quarter of the Romanville (the capital of Civilopia), the apartments in which his mother and his mistress live, a villa in Spain, a flat in London and a valuable art collection, spread between his homes and also those of his children.

As per the advise to Mr. Ahmed by the Civilopian lawyer if he should die without making a will or undertaking any lifetime planning. With regard to the trusts The terms of a living trust will almost always include a clause outlining what should happen to the trust assets when the settlor dies. In many cases, the settlor will also have been the trustee and beneficiary, meaning that they would have been able to derived benefit from the assets placed in trust during their lifetime. We can see that in case the details are not instructed through a will there can be a lot of misunderstandings and cionfusions, In order to distribute the assests in a rational way Mr. Ahmed will have to make the Will with the help of his lawyer. An ultimate beneficiary, however, should have been named in the trust instrument (that is, the document used to establish the trust); it is ...