Question 1

Which of these statements is false?

Accepted Answer

A)  New or replacement trustees must always be appointed by deed. 
B)  New or replacement trustees must be appointed in the manner prescribed by the power to make the appointment. 
C)  A deed is required to vest the trust property in a new trustee of land. 
D)  The appointment of a new trustee requires the approval of the protector if this is specified in the trust instrument. 
A)  New or replacement trustees must always be appointed by deed. 
B)  New or replacement trustees must be appointed in the manner prescribed by the power to make the appointment. 
C)  A deed is required to vest the trust property in a new trustee of land. 
D)  The appointment of a new trustee requires the approval of the protector if this is specified in the trust instrument. A

Question 2

Norma is one of three trustees of a trust of personal property, held for Martha and Wainright, aged 19 and 22 respectively, the only two beneficiaries of the trust. Martha and Wainright, simply because they do not like Norma, wish to have her removed from the trust, leaving the other trustees to administer it. The trust contains no express powers over the removal of trustees. Martha and Wainright can:

Accepted Answer

A)  Remove Norma by bringing the trust to an end and then revest the property in the remaining trustees. 
B)  Ask the court to remove Norma under s.41 of the Trustee Act 1925. 
C)  Require Norma to retire under s.19(2)(a) of the Trusts of Land and Appointment of Trustees Act 1996. 
D)  Require Norma to retire under s.39 of the Trustee Act 1925. 
A)  Remove Norma by bringing the trust to an end and then revest the property in the remaining trustees. 
B)  Ask the court to remove Norma under s.41 of the Trustee Act 1925. 
C)  Require Norma to retire under s.19(2)(a) of the Trusts of Land and Appointment of Trustees Act 1996. 
D)  Require Norma to retire under s.39 of the Trustee Act 1925. A

Question 3

Mary and Nigel are trustees of a family trust. Mary died last year and Nigel would like Pieter to be appointed to replace her.
Which of the following statements is the most accurate?

Accepted Answer

A)  Nigel as the sole remaining trustee may make the appointment since this is one of the powers of trustees. 
B)  Nigel must apply to the court for an appointment to be made. 
C)  Nigel should read the trust instrument because the settlor, a protector, or some other person may have the power to appoint a new trustee. 
D)  Nigel should ask the personal representatives of Mary to make the appointment since they stand in her shoes as trustees until a new trustee has been appointed. 
A)  Nigel as the sole remaining trustee may make the appointment since this is one of the powers of trustees. 
B)  Nigel must apply to the court for an appointment to be made. 
C)  Nigel should read the trust instrument because the settlor, a protector, or some other person may have the power to appoint a new trustee. 
D)  Nigel should ask the personal representatives of Mary to make the appointment since they stand in her shoes as trustees until a new trustee has been appointed. C

Question 4

Which of the following statements is the most accurate?

Accepted Answer

A)  Trustees may make decisions by majority vote. 
B)  Trustees must normally act unanimously. 
C)  Trustees' decisions must be made in a meeting at which all are present. 
D)  Where there are two or more trustees, any one of them can provide a good receipt for a payment made by a third party. 
A)  Trustees may make decisions by majority vote. 
B)  Trustees must normally act unanimously. 
C)  Trustees' decisions must be made in a meeting at which all are present. 
D)  Where there are two or more trustees, any one of them can provide a good receipt for a payment made by a third party.

Question 5

Which of the following statements is false?

Accepted Answer

A)  Trustees are not normally obliged to provide any reasons for their decisions. 
B)  If trustees keep minutes of their meetings, and record in these minutes the reasons for a decision, the beneficiaries can call for a copy of the minutes and so discover the reasons for the decision. 
C)  Only in an exceptional case would the trustees be allowed to refuse to disclose the trust instrument to the main class of objects of a discretionary trust. 
D)  The trustees are unlikely to be compelled to disclose the contents of a letter written to them by the settlor (but not contained in the trust instrument) providing guidance on the reason for establishing a discretionary trust and how the settlor would like the trustees to approach their decisions. 
A)  Trustees are not normally obliged to provide any reasons for their decisions. 
B)  If trustees keep minutes of their meetings, and record in these minutes the reasons for a decision, the beneficiaries can call for a copy of the minutes and so discover the reasons for the decision. 
C)  Only in an exceptional case would the trustees be allowed to refuse to disclose the trust instrument to the main class of objects of a discretionary trust. 
D)  The trustees are unlikely to be compelled to disclose the contents of a letter written to them by the settlor (but not contained in the trust instrument) providing guidance on the reason for establishing a discretionary trust and how the settlor would like the trustees to approach their decisions.

Question 6

Five partners in a dental practice acquire the freehold of their practice premises. It is registered in the names of Andrew, Bernardette, Colin and Deepak. The transfer form states that the property is held upon trust for Andrew, Bernadette, Colin, Deepak and Edwina as tenants in common in equal shares.
Unfortunately, Andrew was killed in a motor accident two months ago. The partners have decided that they will not appoint a new partner.
Which of the following statements is true?

Accepted Answer

A)  Andrew ceases to be a trustee because he is dead, but nothing else changes. 
B)  Andrew' death creates a vacancy for a trustee which is automatically filled by Edwina. 
C)  Because the partners are tenants in common, Edwina does not automatically replace Andrew as a trustee, but she would have done if the partners had been joint tenants. 
D)  Andrew's place as a trustee is taken by his personal representatives. 
A)  Andrew ceases to be a trustee because he is dead, but nothing else changes. 
B)  Andrew' death creates a vacancy for a trustee which is automatically filled by Edwina. 
C)  Because the partners are tenants in common, Edwina does not automatically replace Andrew as a trustee, but she would have done if the partners had been joint tenants. 
D)  Andrew's place as a trustee is taken by his personal representatives.

Question 7

Which one of the following situations is one where the courts would be unlikely to intervene with a decision of the trustees?

Accepted Answer

A)  The trustees make an advancement of capital to Marshall under a discretionary power of advancement in return for him surrendering a life interest. They have. incorrectly .been advised by a qualified financial adviser that this will not have any adverse taxation consequences. In fact, it results in a significant charge to tax. 
B)  Boris refused to advance property to his son under a discretionary power of advancement, because he does not like his son's new wife. 
C)  Lily, in preference to a named class of objects of a power, appointed her friend, Herman, to enjoy the benefits of the property. 
D)  Deidre, in exercising a power of appointment, decided to select from the valid class of potential objects on the basis of those persons that she found most attractive. 
A)  The trustees make an advancement of capital to Marshall under a discretionary power of advancement in return for him surrendering a life interest. They have. incorrectly .been advised by a qualified financial adviser that this will not have any adverse taxation consequences. In fact, it results in a significant charge to tax. 
B)  Boris refused to advance property to his son under a discretionary power of advancement, because he does not like his son's new wife. 
C)  Lily, in preference to a named class of objects of a power, appointed her friend, Herman, to enjoy the benefits of the property. 
D)  Deidre, in exercising a power of appointment, decided to select from the valid class of potential objects on the basis of those persons that she found most attractive.

Question 8

When will the courts consider that a purported act of trustees is not void?

Accepted Answer

A)  Where the trust specifies that the terms of the trust may be varied by the trustees executing a deed of variation, and the trustees make a unanimous decision to vary the trust, but fail to use a deed. 
B)  Where the trustees of a trust to make grants towards the cost of educating the children of employees of a named company give a grant to the child of a cleaner (who is not employed by the company but works through an independent agency). 
C)  Where the trustees of a trust to make grants towards the cost of educating the children of employees of a named company have a policy of giving only one grant per child, but in error make a second grant in respect of the same child. 
D)  Where the trustees make a decision to invest in fine art which they have been (incorrectly) advised by a solicitor is a decision which they can make, but is later discovered to be outside their investment powers. 
A)  Where the trust specifies that the terms of the trust may be varied by the trustees executing a deed of variation, and the trustees make a unanimous decision to vary the trust, but fail to use a deed. 
B)  Where the trustees of a trust to make grants towards the cost of educating the children of employees of a named company give a grant to the child of a cleaner (who is not employed by the company but works through an independent agency). 
C)  Where the trustees of a trust to make grants towards the cost of educating the children of employees of a named company have a policy of giving only one grant per child, but in error make a second grant in respect of the same child. 
D)  Where the trustees make a decision to invest in fine art which they have been (incorrectly) advised by a solicitor is a decision which they can make, but is later discovered to be outside their investment powers.

Question 9

Which of the following statements is the most appropriate for describing the duties of trustees in relation to the beneficiaries of a discretionary trust of personal property in which the principal class of beneficiaries are the five children of the settlor

Accepted Answer

A)  The trustees must always give effect to the wishes of the beneficiaries. 
B)  The trustees must always consult the beneficiaries, although they are not obliged to give effect to the wishes which the beneficiaries express. 
C)  The trustees must act in the best interests of the beneficiaries, even if this may not be what the beneficiaries want. 
D)  The nature of a discretion is that the trustees can do whatever they want without regard to the views or best interests of the beneficiaries. 
A)  The trustees must always give effect to the wishes of the beneficiaries. 
B)  The trustees must always consult the beneficiaries, although they are not obliged to give effect to the wishes which the beneficiaries express. 
C)  The trustees must act in the best interests of the beneficiaries, even if this may not be what the beneficiaries want. 
D)  The nature of a discretion is that the trustees can do whatever they want without regard to the views or best interests of the beneficiaries.

Question 10

Which of the following statements is the most accurate?

Accepted Answer

A)  A trust will fail if there is no trustee. 
B)  A trust will not fail for want of a trustee because the Queen, as parens patriae, will act as trustee in the absence of any other person capable of acting. 
C)  A trust will not fail for want of a trustee because not all trusts require there to be a trustee. 
D)  A trust will not fail for want of a trustee because there are mechanisms for allowing an alternative trustee to be appointed. 
A)  A trust will fail if there is no trustee. 
B)  A trust will not fail for want of a trustee because the Queen, as parens patriae, will act as trustee in the absence of any other person capable of acting. 
C)  A trust will not fail for want of a trustee because not all trusts require there to be a trustee. 
D)  A trust will not fail for want of a trustee because there are mechanisms for allowing an alternative trustee to be appointed.

Which of these statements is false?

Mary and Nigel are trustees of a family trust. Mary died last year and Nigel would like Pieter to be appointed to replace her. Which of the following statements is the most accurate?

Which of the following statements is the most accurate?

Which of the following statements is false?

Which one of the following situations is one where the courts would be unlikely to intervene with a decision of the trustees?

When will the courts consider that a purported act of trustees is not void?

Which of the following statements is the most appropriate for describing the duties of trustees in relation to the beneficiaries of a discretionary trust of personal property in which the principal class of beneficiaries are the five children of the settlor

Which of the following statements is the most accurate?

What Is Equity?

Equity and the Management of Property; and Equitable Obligations

Certainty

Constitution of Trusts

Formalities

Resulting Trusts

Interests in the Family Home; and Constructive Trusts

Proprietary Estoppel; The Evolution of Rights in the Family Home

Clubs and Societies

Wills and Inheritance

The Role and Status of Charities

Charitable Trusts

Cy-Près: Redistributing Funds and Changing Purposes

Control and Regulation of Charitable Trusts

Choosing Who Benefits

Fixed Trusts; and Powers of Appointment

Discretionary Trusts

Variation of Beneficial Interests; Powers of Maintenance and Advancement

Investment; Management and Delegation

Fiduciary Duties; Remedies Against the Trustee for Breach of Trust

Tracing

Specific Performance; Rescission, Rectification, and Account

Injunctions

Filters

Exam 20: Control and Accountability; Appointing and Changing Trustees

Which of these statements is false?

Mary and Nigel are trustees of a family trust. Mary died last year and Nigel would like Pieter to be appointed to replace her. Which of the following statements is the most accurate?

Which of the following statements is the most accurate?

Which of the following statements is false?

Which one of the following situations is one where the courts would be unlikely to intervene with a decision of the trustees?

When will the courts consider that a purported act of trustees is not void?

Which of the following statements is the most appropriate for describing the duties of trustees in relation to the beneficiaries of a discretionary trust of personal property in which the principal class of beneficiaries are the five children of the settlor

Which of the following statements is the most accurate?

What Is Equity?

Equity and the Management of Property; and Equitable Obligations

Certainty

Constitution of Trusts

Formalities

Resulting Trusts

Interests in the Family Home; and Constructive Trusts

Proprietary Estoppel; The Evolution of Rights in the Family Home

Clubs and Societies

Wills and Inheritance

The Role and Status of Charities

Charitable Trusts

Cy-Près: Redistributing Funds and Changing Purposes

Control and Regulation of Charitable Trusts

Choosing Who Benefits

Fixed Trusts; and Powers of Appointment

Discretionary Trusts

Variation of Beneficial Interests; Powers of Maintenance and Advancement

Investment; Management and Delegation

Fiduciary Duties; Remedies Against the Trustee for Breach of Trust

Tracing

Specific Performance; Rescission, Rectification, and Account

Injunctions

Filters