Introduction to Trusts

Question 1

Bare trust

Answer 1

Beneficiary of full age and capacity (sui juris) is absolutely entitled to the trust property / several beneficiaries are together absolutely entitled

Question 2

A beneficiary who is sui juris and absolutely entitled to the trust property may call for the trust property to be transferred to him, bringing the trust to an end

Answer 2

Saunders v Vautier

Question 3

Saunder v Vautier extended to apply to multiple beneficiaries so long as they are in agreement and sui juris

Answer 3

Curtis v Luken

Question 4

Does Saunders v Vautier apply to discretionary trusts

Answer 4

Re Smith - yes

Gartside v IRC ; Sainsbury v IRC - no as potential beneficiaries of a discretionary trust have no proprietary interest until selected by the trustees

Question 5

Saunders v Vautier does not apply to powers of appointment,

Answer 5

but they can block any other beneficiaries (e.g. the life tenant and remainder man) from using Saunders v Vautier