Exam 17: Discretionary Trusts

Errol, in his home-made will, leaves 'ten of my most precious pieces of crystal' to be held by Jonathan, his trustee, 'in the expectation that he will distribute them to such of such students who graduated in 2015 from Barchester University as Jonathan in his absolute discretion shall decide.' Errol has sought to create:

Which of the following statements is true in relation to the potential objects of a trust or power?

Which of the following gifts in a will is an example of a discretionary trust?

Errol, in his home-made will, leaves 'ten of my most precious pieces of crystal' to be held by Jonathan, his trustee, 'in the expectation that he will distribute them to such of such students who graduated in 2015 from Barchester University as Jonathan in his absolute discretion shall decide.' Jonathan has been diagnosed as suffering from dementia and is incapable of making a decision. Which of the following statements is correct?

Which of the following is an example of a discretionary trust?

Which, if any, of the following statements are true in relation to the protector of a discretionary trust?

Merril, in his will, left a fund to Harriet, 'to hold it on discretionary trust, and to distribute it among my children in any share as Harriet in her absolute discretion thinks fit.' Merril has four children, all of whom are adults: Beverly, Coco, Davina, and Ethel. Merril has now died, and Merril's personal representatives have transferred the fund to Harriet, who has put the money in a separate bank account. Harriet has now indicated to the children that he finds it too difficult to make a decision. Which, if any, of the following statements are true?

Errol, in his home-made will, leaves £80,000 to Kevin, to be distributed under a discretionary trust to 'such of my old University friends who survive me, as Kevin in his absolute discretion shall decide.' In relation to certainty of objects, which of the following statements is correct?

Which of the following statements is most true in relation to the rights of the potential objects of a discretionary trust?

Balmer, in his home-made will, leaves all his property to be held by Judas, his trustee, 'in the hope and expectation that he will distribute it to such of my blood relatives who survive me, as Judas in his absolute discretion shall decide, or in default of appointment, everything should be given to my nephew, George.' Balmer has sought to create: