9 Questions
By his valid will, the testator made the following disposition: ‘I give £10,000 to my trustees to be distributed between my children and my friends in such shares as my trustees shall determine.’ The executors of the testator’s will have paid £10,000 to the trustees.
The trustees hold the money on a resulting trust for the testator’s estate.
By his valid will, the testator made the following disposition: ‘I give £10,000 to my trustees. £5,000 is to be distributed to my children, and £5,000 is to be distributed to British men, in such shares as my trustees shall determine.’ The executors of the testator’s will have paid £10,000 to the trustees. Which one of the following describes the trustees’ position in relation to the £10,000?
The trustees hold £5,000 on discretionary trust for the testator’s children and £5,000 on resulting trust for the testator’s estate.
True or false: Evidential uncertainty in connection with the objects of a trust is fatal to all types of trust.
False
True or false: The trustees of a fixed trust have a distributive discretion.
False
True or false: The objects of a discretionary trust have proprietary rights in the trust property.
False
True or false: A contingent interest can become vested
True
A trustee holds property on trust for A for life, remainder to the first of B and C to get married and, if neither marries, to charity
A’s interest is vested in possession. B and C’s interests are contingent.
A trustee holds property on trust for A for life, remainder to B (age 18) and C (age 16). A, B and C (all of whom are of sound mind) wish to use the rule in Saunders v Vautier to collapse the trust and divide the property equally between them.
A, B and C cannot collapse the trust until C reaches the age of 18.
True or false: Only beneficiaries with vested interests in the trust property have Saunders v Vautier rights.
False
Test your knowledge on the trustees' position in relation to trust dispositions, evidential uncertainty, distributive discretion, objects of discretionary trust, and contingent interests becoming vested.
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