Equity and the Law of Trust Chapter 15 § 1

ComprehensiveWildflowerMeadow avatar
ComprehensiveWildflowerMeadow
·
·
Download

Start Quiz

Study Flashcards

23 Questions

Who has the power to appoint a new trustee to fill a vacancy or to replace an existing trustee?

The settlor or testator

Under what circumstances can the court appoint trustees?

All of the above

What happens if the will does not contain provisions for the appointment of trustees?

The personal representatives become trustees

According to the text, how many trustees can be appointed in addition to the existing trustees?

Multiple trustees

According to the text, who has the power to appoint new trustees?

The court

According to the text, is there a limit to the number of trustees who may be appointed?

No, there is no limit

According to the text, is it necessary to replace trustees who have ceased to hold office?

No, it is not necessary

According to the text, when does a bare power given to two or more persons by name determine?

On the death of the first named person to die

What is the meaning of 'continuing trustee' as used in the text?

A trustee who continues to act after the appointment of a new trustee

According to the text, who can validly make an appointment of new trustees without the concurrence of a refusing or retiring trustee?

The continuing trustees or trustee

What is the mode of appointment required under section 36?

It must be in writing

According to the text, what happens if all the trustees appointed under an inter vivos trust are already dead at the date of the deed?

The trust becomes invalid

According to the text, what is the requirement for a trustee remaining out of the United Kingdom for more than twelve months?

An uninterrupted period of twelve months

According to the text, what does it mean if a trustee desires to be discharged from all or any of the trusts or powers reposed in or conferred on him?

The trustee can retire from a part only of the trusts or powers

According to the text, what is the requirement for a trustee to be considered unfit to act?

Personal incapacity such as old age or mental disorder

According to the text, when is a voluntary trust considered valid?

If the document relied upon as constituting the trust is a pur- ported conveyance or transfer to trustees who are not named or otherwise identified

What happens to the trust property on disclaimer by the trustees?

The trust property is revested in the settlor

Under what circumstances can a trust fail for want of a trustee?

If the trustees selected by the settlor cannot or will not undertake the office

Can the settlor appoint new or additional trustees in an inter vivos trust?

Yes, if such a power is expressly reserved to him by the trust instrument

According to the Trustee Act 1925, how many trustees can be appointed for any part of the trust property held on distinct trusts?

Up to four trustees

Under what circumstances can a trustee be discharged from their trust according to the Trustee Act 1925?

If there is only one trustee originally appointed

Can a sole surviving trustee retire from the trust and appoint a sole trustee to act in their stead if more than one trustee was originally appointed?

No

Can section 37(1)(c) of the Trustee Act 1925 be overridden by a provision in the trust instrument?

Yes

Study Notes

Appointment of Trustees and the Circumstances in which the Power may be Exercised

  • The first trustees of a trust are usually appointed by the creator of the trust (settlor or testator).
  • The appointment of the first trustees can be made even if they predecease the testator or if no trustees were originally appointed.
  • In the absence of appointed trustees, the court can appoint trustees under discussed powers.
  • In the case of a voluntary trust created inter vivos, a valid trust can only be constituted if the trustees are named or identified and are capable grantees.
  • Once a trust is completely constituted, it remains valid even if the trustees disclaim the trust or if the settlor dies without communicating the trust to the trustees.
  • The court has the power to appoint new trustees if the appointed trustees disclaim the trust.
  • A trust will not fail for want of a trustee, except if it is essential that the selected trustees appointed by the settlor alone act as trustees and they cannot or will not undertake the office.
  • The settlor only has the power to appoint new trustees if expressly reserved to him by the trust instrument.
  • An express power of appointing new trustees is usually not included as the statutory power is considered sufficient.
  • The statutory power can be exercised in eight circumstances, including when a trustee is dead, remains out of the United Kingdom for more than twelve months, desires to be discharged from the trusts, refuses to act, is unfit to act, is incapable of acting, is an infant, or has been removed under a power contained in the trust instrument.
  • The person or persons nominated to appoint new trustees in the trust instrument can exercise the statutory power.
  • The statutory power can also be exercised by the personal representatives or the court in certain cases.

Quiz: Understanding the Survival of Bare Powers in Estate Law Test your knowledge of estate law with this quiz on the survival of bare powers. Explore the application of the old rule that bare powers do not survive, but determine upon the death of the first named person. Challenge yourself with scenarios involving surviving or continuing trustees, personal representatives, and more.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free

More Quizzes Like This

W2 - Beneficiaries
9 questions

W2 - Beneficiaries

ImprovedChalcedony1706 avatar
ImprovedChalcedony1706
W3 - Trustees and Trustee Duties
10 questions

W3 - Trustees and Trustee Duties

ImprovedChalcedony1706 avatar
ImprovedChalcedony1706
Trustees and Self-Dealing Rule Quiz
12 questions
Use Quizgecko on...
Browser
Browser