Equity and the Law of Trusts Chapter 1 § 4 Quiz

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Questions and Answers

Which term best describes the role of trustees in a trust?

Beneficiaries

Legal owners (correct)

Feoffees to uses

Cestuis que trust

During which time period did the practice of conveying land for more permanent purposes begin to grow?

Before the Conquest

Early thirteenth century (correct)

After early doubts

Limited time and purpose

How did the common law treat the feoffees to uses?

As beneficiaries

As unfettered owners (correct)

As legal owners

As cestuis que use

When does a resulting trust arise?

When the recipient is unaware of the transfer Signup and view all the answers

What happens to the trust property if the trustee becomes bankrupt?

It remains subject to the trust and unaffected by the bankruptcy Signup and view all the answers

What is a primary reason for creating a family settlement?

To avoid taxes Signup and view all the answers

What is the classic form of a life interest trust?

The life tenant has access to the income but not the capital Signup and view all the answers

Which type of trust may be useful to take into account the changing circumstances and needs of the beneficiaries?

Discretionary trusts Signup and view all the answers

What is the purpose of a protective trust?

To protect assets from spendthrift beneficiaries and outside claimants Signup and view all the answers

Which individuals may be included in the class of discretionary beneficiaries?

The settlor's widow and the issue of the settlor's paternal grandfather Signup and view all the answers

Why do wealthy individuals choose tax havens for their trusts?

To offer special advantages in terms of confidentiality and protection from fiscal demands Signup and view all the answers

What did the Chancellor do in relation to feoffees to uses?

Ordered the feoffees to uses to carry out the directions given to them Signup and view all the answers

What was the purpose of adopting the device of the use?

All of the above Signup and view all the answers

What was the effect of the Statute of Uses passed in 1535?

It executed the vast majority of uses Signup and view all the answers

What is the relationship between the legal owner and the equitable owner in a trust?

The legal owner is the trustee and the equitable owner is the beneficiary Signup and view all the answers

Which of the following best describes a blind trust?

A trust where the trustee has full power over the trust property without reference to the settlor Signup and view all the answers

Under what circumstances does a trust arise in relation to the family home?

When the family home is owned by a married or unmarried couple Signup and view all the answers

Which entities commonly have their funds and property vested in trustees?

All of the above Signup and view all the answers

According to Lord Browne-Wilkinson, what is important in order for a trust to not be rendered commercially useless?

To distinguish between the basic principles of trust law and specialist rules applicable only to traditional trusts Signup and view all the answers

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Description

Test your knowledge about resulting trusts and the differing views of Lord Millett and Lord Browne-Wilkinson. Explore the circumstances in which a resulting trust can arise and the role of conscience in these cases.