Podcast Beta
Questions and Answers
True or false: Trustees must provide beneficiaries with reasons for the way they have exercised their powers.
False
Which of the following is a dispositive power of trustees?
A trustee holds a trust fund on trust for A for life, remainder to B and C in equal shares. The trustee is considering how to invest the trust fund.
What should the trustee be trying to achieve from their investment strategy?
A trustee of a life interest trust decides that they will invest £500,000 of trust money in a property for the life tenant to live in. The trustee decides to buy a property in the north of France, where the life tenant is currently living. The trust instrument does not contain any express provisions relating to the acquisition of land.
True or false: The trustee has acted in breach of trust.
Signup and view all the answers
A trust fund is worth £500,000. It has two trustees, who are both property lawyers. The trustees decide to invest £50,000 of trust money in company shares. They discuss the matter together and decide to make the investment. The trust instrument does not contain any express provisions relating to investment.
Which ONE of the following best describes the position?
Signup and view all the answers
Which of the following powers are trustees permitted to delegate using their statutory powers of delegation?
Signup and view all the answers
Ten years ago, a trustee used money from a trust fund to purchase a house for themselves. The beneficiary has only just discovered the breach.
True or false: The beneficiary cannot recover the trust property because the limitation period has expired
Signup and view all the answers
A trust has three trustees. One of the trustees is a solicitor, another a doctor and the third is an accountant.
The solicitor is a director of the company in which the trust has a significant shareholding. The solicitor has not attended board meetings for some time and, as a result, was unaware of a number of poor business decisions which were made by the board. The value of the company shares has decreased significantly as a result of these decisions.
The company accounts have been circulated to the three trustees on an annual basis. It has been very clear from the accounts that the company has been in financial difficulties for several years and that the share value has been decreasing year on year. The trustees have not taken any action to try and improve the position of the company or sell the shares.
Which of the trustees is likely to be found liable for breach of trust?
Signup and view all the answers
A trustee holds a fund on trust for A for life, remainder to B (18) and C(12). A wants the trustee to purchase land in Spain for A to live in. The trust instrument does not give the trustee the power to acquire land overseas.
Which of the following represents the best advice to the trustee?
Signup and view all the answers
In which of the following circumstances might it be appropriate for trustees to surrender their discretion to the court?
Signup and view all the answers
