To be valid, an express private trust must have the three certainties. What are the three certainties?
ResponsesPress Enter or Space to submit the answer
The certainties of intention, subject matter, and objects.
True or false? If a trust is void for uncertainty of intention, the transfer is a gift to the recipient.
ResponsesPress Enter or Space to submit the answer
True.
Which of the following are likely to FAIL for lack of certainty of subject matter? Choose all which apply.
response - incorrect
ResponsesPress Enter or Space to submit the answer
A trust of “most of my jewellery”.
A trust of “most of my jewellery”. - correct
A trust of “my rights under Amy’s will” (Amy is still alive).
A trust of “my rights under Amy’s will” (Amy is still alive). - not selected, this is the correct answer
Correct
A trust of “a decent amount of my estate”.
A fixed trust for “my old friends” would fail for uncertainty. Which type of uncertainty is this?
Conceptual uncertainty.
True or false? Despite passing the given postulant test, a discretionary trust will fail if it is administratively unworkable.
True. A discretionary trust will fail if the class of potential beneficiaries is so large as to prevent the trustees from making a sensible selection.
Does a settlor who wishes to create a trust have to appoint another person as trustee?
ResponsesPress Enter or Space to submit the answer
No, they can declare themself to be the trustee.
True or false? When creating a trust by transferring property to the trustee, the settlor must transfer the property and make a declaration of trust.
True. In the absence of a declaration of trust, there will be no certainty.
Which type of secret trust must have the terms of the trust communicated to the trustee at or before the date of the will?
ResponsesPress Enter or Space to submit the answer
Half secret trust.
True or false? A person with a life interest in a trust has a limited interest.
True. They are entitled to the income of the trust property and not the capital.
Can a beneficiary of a discretionary trust insist that the trustees exercise a discretion in their favour?
No.
Which of the following must be true for the beneficiaries of a trust to be able to terminate the trust under the rule in Saunders v Vautier? Choose all which apply.
Correct
All the beneficiaries are adults and of sound mind.
All the beneficiaries are adults and of sound mind. - correct
Correct
All the beneficiaries agree.
Albert provides the purchase money for a house, but the legal title of the house is transferred to Betty. When does the presumption of advancement apply? Select all correct answers.
response - incorrect
ResponsesPress Enter or Space to submit the answer
Albert is Betty’s husband or fiancé.
Albert is Betty’s husband or fiancé. - not selected, this is the correct answer
Correct
Albert is Betty’s father.
Albert is Betty’s father. - correct
Albert stands in loco parentis to Betty.
True or false? The presumptions of resulting trust and advancement can be rebutted by acts or statements of a person before or at the time of the transaction.
ResponsesPress Enter or Space to submit the answer
True. Later actions or statements cannot be taken into account.
Which of the following apply when legal title is registered in the names of 2 cohabitees? Choose all which apply.
The legal title is held as joint tenants.
The legal title is held as joint tenants. - correct
The equitable interest may be held as either joint tenants or tenants in common
Which of the following would be likely to be regarded as indicating an express common intention? Choose all which apply.
The house is as much yours as mine”.
“The house is as much yours as mine”. - correct
Correct
“When my divorce comes through, we’ll get the house in both our names”.
“When my divorce comes through, we’ll get the house in both our names”. - correct
“Can we agree a 75/25 percent split”?
True or false? A charitable trust can exist indefinitely, and the perpetuity rule requiring the capital to be distributed within the perpetuity period does not apply to charitable trusts.
ResponsesPress Enter or Space to submit the answer
True. The perpetuity rule does not apply to charitable trusts.
If a charitable trust’s objectives become impossible to carry out after the trust has come into operation, does the court need to find that the settlor had a general charitable intention before applying the trust funds to a similar purpose?
No.
True or false? A legacy to benefit the employees of a company by providing them with cultural opportunities, whilst not valid as a charitable trust, might still be valid as a Denley trust.
True, provided the trust is limited to the perpetuity period.
When existing trustees of a trust appoint a new trustee by deed, is there any other document they need to execute? Choose all which apply.
No, as regards any land.
No, as regards any land. - not selected, this is the correct answer
Correct
Yes, stock transfer forms will be required for any company shares.
Yes, stock transfer forms will be required for any company shares. - correct
Correct
No, as regards chattels.
True or false? A trustee can delegate all their functions by power of attorney.
ResponsesPress Enter or Space to submit the answer
True. All functions can be delegated by power of attorney for up to 12 months.
True or false? A 15-year-old trust beneficiary has an interest in the trust capital which is contingent on attaining age 21. Once the beneficiary reaches age 18, the trustees must pay the income arising after the beneficiary’s 18th birthday to the beneficiary.
True, assuming the will has not amended the statutory power of maintenance
Can trustees use the power of advancement to advance capital to a life tenant?
ResponsesPress Enter or Space to submit the answer
No.
Question
Trustees are holding trust property for A for life, remainder to B (aged 21) and C (aged 18) contingent on attaining 25. Does A have to consent to a proposed advance to C?
Yes, because A has a prior interest.
Can beneficiaries demand to inspect minutes of a trustees’ meeting which indicate why they exercised a discretion in a particular way?
ResponsesPress Enter or Space to submit the answer
No.
