solve the question using IRAC METHOD. WORD LIMIT: 800

Harriet and Adam are trustees on Jim Wilson's mortis causa trust for Jim's children's education. The fund is to be invested to ensure that Jim's children are privately educated and to provide money for their maintenance while at University. However, Harriet and Adam thought that it would be all right to leave the fund in a deposit account, which had been paying 6% interest for several years, and they did not consider other possible forms of investment for the fund. In recent years, deposit account interest has been dropping, and the account is now paying only 1%. In addition, Harriet has occasionally borrowed money from the trust for her family's use, though she has always paid the money back fairly soon. However, this time she is unable to pay the money back. Adam has not been paying much attention to the affairs of the trust. Explain to Harriet and Adam their legal position in terms of the law of trusts. In particular whether Harriet and Adam are in breach of their duties as trustees. (100 marks)