EQUITY AND TRUSTS FULLY UPDATED EXAM CONTENT WITH EVERY
QUESTION AND ITS CORRECT ANSWER INCLUDED FOR REVIEW
Which ONE of the following scenarios creates a trust?
X also died recently. Their will contained the following clause:
"I give £100,000 to Jessica and she is to use this money to pay for Kevin to
attend the sixth form at The Grange Academy."
Kevin is 16 and will be starting in the sixth form next September.
-
Last week, a father declared that he was going to hold his shares in Betabuild
plc on trust for his daughter until she should attain 25. As a result, the father
became the trustee, and the daughter became the beneficiary of the shares. As
trustee, the father continued to be the absolute owner of the shares but owed a
duty to apply all profits and benefits for his daughter
False
1 multiple choice option
A year after creating the trust in Question 2, the father saw that the value of
Betabuild shares was particularly high and thought that it would be a good idea
to sell them and re-invest the money.
Who would be the correct person to sell the shares?
The father, in his capacity as trustee.
-
Two years ago, Xavier created a trust for his children. He appointed Sam, Tania
and Victor to be the trustees. Six months ago, Sam was declared bankrupt and
last month, Victor died.
Which ONE of the following statements is CORRECT?
The beneficiaries' interest in the trust property means that it will still be held on
trust for them by Tania and Sam, notwithstanding Victor's death.
-
,Susan created a trust two years ago. She appointed Wayne as the sole trustee,
asking him to hold £100,000 on trust for her two children, Emma and William.
Last month, Susan discovered that Wayne has spent some of the trust fund
buying a car for himself.
Is the following statement TRUE or FALSE?
Susan, as the settlor of the trust, can sue Wayne for the breach of his duty to the
trust.
False
1 multiple choice option
John’s will created a trust of £100,000 for George if he attains 21. When John
died, George was aged 19. Sadly, George died before his 21st birthday.
Will the £100,000 be paid to George’s estate?
No
1 multiple choice option
Susan's will contains the following trust:
"I give £100,000 to my trustees to hold on trust for my husband, Ben for life
remainder to my children, Nicholas and Jane."
Susan is alive.
Is the following statement TRUE or FALSE?
Ben, Nicholas, and Jane have vested interests.
False
1 multiple choice option
Harriet's (validly executed) will contains the following gifts:
Clause 3 "I give £1,000 to Paul."
Clause 4 "I give the residue of my estate after payment of all debts and legacies
to Jenny'".
Which ONE of the following statements is CORRECT?
If Paul's legacy fails to have effect because Paul predeceases Harriet, the £1,000
will pass into residue. If the residuary gift fails because Jenny predeceases
Harriet, the residue will pass to Harriet's next of kin on her intestacy.
,-
Jonathan is a trustee holding land (which is let to tenants) and shares on trust for
Barbara for life, remainder to her son, Paul who is aged 20 years.
Which ONE of the following statements about this trust is not accurate?
During Barbara's lifetime, she is the sole owner of the equitable interest in the
trust property.
-
Can these beneficiaries end the trust under Saunders v Vautier ?
A trust for ‘Harriet for life remainder to her children, Elizabeth and
Laura’. Elizabeth and Laura are respectively aged 20 and 23.
Yes
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
A trust created in a will ‘for such of my children who survive me and attain
the age of 21, if more than one equally’. Three children survived the
testator, namely, Anne (aged 22), Basil (aged 20) and Cara (aged 18).
Yes
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
A trust for ‘my grandchildren whenever born in such shares as my trustees
shall decide’. The settlor has a 45-year-old son and two grandchildren aged
21 and 18, respectively. Both wish to end the trust.
No
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
A trust for Yusef for life remainder to his children, Zeinab and Shamime.
Zeinab is 19 years old; Shamime is 16.
No
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
, A trust for Barry for life, remainder to his daughter Henrietta provided
she attains the age of 25. Barry is alive and Henrietta is currently 19.
No
1 multiple choice option
A mother’s valid will contained the following clause, “I give £500,000 to my
Trustees to hold for my husband for life, remainder to such of my children who
attain the age of 25 if more than one in equal shares. If all of my children die
before attaining the age of 25, then for the MS Society a registered charity.”
When she died last year, the mother was survived by her husband and their
three children, twin daughters aged 16 years and a son aged 17 years.
Which of the following statements best describes when the husband and the
children could bring the trust to an end?
They will be able to bring the trust to an end when the son is 25.
-
A trust deed contains the following provision:
‘My Trustees shall hold my house in Oxford on trust to permit my husband to
live in the property for the remainder of his life and after his death to hold the
property upon trust for such of my son and daughter who survive my husband
and attain the age of 25 years.’
The son is aged 28 years and the daughter is aged 20 years.
Which of the following best describes the beneficial interests in the trust
fund?
The husband has a vested interest, but the son's and daughter's interests are
contingent.
-
A father transferred £100,000 and company shares to his son to hold on trust for
the father’s granddaughter and grandson, who were aged 17 and 15 respectively
when the trust was created. X signed a written declaration of trust in which he
instructed the son to hold the property on trust for the granddaughter and
grandson until they should attain the age of 21. The granddaughter has just had
her 21st birthday. The grandson has just been killed in an accident.
Which of the following statements best describes the interests of the
beneficiaries?
QUESTION AND ITS CORRECT ANSWER INCLUDED FOR REVIEW
Which ONE of the following scenarios creates a trust?
X also died recently. Their will contained the following clause:
"I give £100,000 to Jessica and she is to use this money to pay for Kevin to
attend the sixth form at The Grange Academy."
Kevin is 16 and will be starting in the sixth form next September.
-
Last week, a father declared that he was going to hold his shares in Betabuild
plc on trust for his daughter until she should attain 25. As a result, the father
became the trustee, and the daughter became the beneficiary of the shares. As
trustee, the father continued to be the absolute owner of the shares but owed a
duty to apply all profits and benefits for his daughter
False
1 multiple choice option
A year after creating the trust in Question 2, the father saw that the value of
Betabuild shares was particularly high and thought that it would be a good idea
to sell them and re-invest the money.
Who would be the correct person to sell the shares?
The father, in his capacity as trustee.
-
Two years ago, Xavier created a trust for his children. He appointed Sam, Tania
and Victor to be the trustees. Six months ago, Sam was declared bankrupt and
last month, Victor died.
Which ONE of the following statements is CORRECT?
The beneficiaries' interest in the trust property means that it will still be held on
trust for them by Tania and Sam, notwithstanding Victor's death.
-
,Susan created a trust two years ago. She appointed Wayne as the sole trustee,
asking him to hold £100,000 on trust for her two children, Emma and William.
Last month, Susan discovered that Wayne has spent some of the trust fund
buying a car for himself.
Is the following statement TRUE or FALSE?
Susan, as the settlor of the trust, can sue Wayne for the breach of his duty to the
trust.
False
1 multiple choice option
John’s will created a trust of £100,000 for George if he attains 21. When John
died, George was aged 19. Sadly, George died before his 21st birthday.
Will the £100,000 be paid to George’s estate?
No
1 multiple choice option
Susan's will contains the following trust:
"I give £100,000 to my trustees to hold on trust for my husband, Ben for life
remainder to my children, Nicholas and Jane."
Susan is alive.
Is the following statement TRUE or FALSE?
Ben, Nicholas, and Jane have vested interests.
False
1 multiple choice option
Harriet's (validly executed) will contains the following gifts:
Clause 3 "I give £1,000 to Paul."
Clause 4 "I give the residue of my estate after payment of all debts and legacies
to Jenny'".
Which ONE of the following statements is CORRECT?
If Paul's legacy fails to have effect because Paul predeceases Harriet, the £1,000
will pass into residue. If the residuary gift fails because Jenny predeceases
Harriet, the residue will pass to Harriet's next of kin on her intestacy.
,-
Jonathan is a trustee holding land (which is let to tenants) and shares on trust for
Barbara for life, remainder to her son, Paul who is aged 20 years.
Which ONE of the following statements about this trust is not accurate?
During Barbara's lifetime, she is the sole owner of the equitable interest in the
trust property.
-
Can these beneficiaries end the trust under Saunders v Vautier ?
A trust for ‘Harriet for life remainder to her children, Elizabeth and
Laura’. Elizabeth and Laura are respectively aged 20 and 23.
Yes
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
A trust created in a will ‘for such of my children who survive me and attain
the age of 21, if more than one equally’. Three children survived the
testator, namely, Anne (aged 22), Basil (aged 20) and Cara (aged 18).
Yes
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
A trust for ‘my grandchildren whenever born in such shares as my trustees
shall decide’. The settlor has a 45-year-old son and two grandchildren aged
21 and 18, respectively. Both wish to end the trust.
No
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
A trust for Yusef for life remainder to his children, Zeinab and Shamime.
Zeinab is 19 years old; Shamime is 16.
No
1 multiple choice option
Can these beneficiaries end the trust under Saunders v Vautier?
, A trust for Barry for life, remainder to his daughter Henrietta provided
she attains the age of 25. Barry is alive and Henrietta is currently 19.
No
1 multiple choice option
A mother’s valid will contained the following clause, “I give £500,000 to my
Trustees to hold for my husband for life, remainder to such of my children who
attain the age of 25 if more than one in equal shares. If all of my children die
before attaining the age of 25, then for the MS Society a registered charity.”
When she died last year, the mother was survived by her husband and their
three children, twin daughters aged 16 years and a son aged 17 years.
Which of the following statements best describes when the husband and the
children could bring the trust to an end?
They will be able to bring the trust to an end when the son is 25.
-
A trust deed contains the following provision:
‘My Trustees shall hold my house in Oxford on trust to permit my husband to
live in the property for the remainder of his life and after his death to hold the
property upon trust for such of my son and daughter who survive my husband
and attain the age of 25 years.’
The son is aged 28 years and the daughter is aged 20 years.
Which of the following best describes the beneficial interests in the trust
fund?
The husband has a vested interest, but the son's and daughter's interests are
contingent.
-
A father transferred £100,000 and company shares to his son to hold on trust for
the father’s granddaughter and grandson, who were aged 17 and 15 respectively
when the trust was created. X signed a written declaration of trust in which he
instructed the son to hold the property on trust for the granddaughter and
grandson until they should attain the age of 21. The granddaughter has just had
her 21st birthday. The grandson has just been killed in an accident.
Which of the following statements best describes the interests of the
beneficiaries?
