Chapter 11 Self-test questions

Which of the following statements is correct?

Trustees in a trust of land cannot exercise any of the powers of an absolute owner.

Trustees in a trust of land can exercise any of the powers of an absolute owner.

Trustees in a trust of land can exercise any of the powers of an absolute owner, except that of selling the land.

Trustees in a trust of land can exercise only some of the powers of an absolute owner.

Which of the following statements is correct? Please select all that apply.

The settlor may exclude the duty of the trustees to consult with the beneficiaries before exercising their powers.

The trustees should, so far as practicable, consult with the adult beneficiaries who have an interest in possession.

The trustees have no statutory duty to consult with the beneficiaries in any circumstances.

The trustees do not have a statutory duty to consult with the beneficiaries under some circumstances (for example, in trusts arising from or created in wills made before the Act came into force).

Only a beneficiary with an interest in possession is entitled to occupy the property.

True

False

Which of the following statements is correct? Please select all that apply.

In restricting or excluding a beneficiary from occupation of the land, trustees may not act unreasonably in making the decision.

In restricting or excluding a beneficiary from occupation of the land, trustees may not restrict a beneficiary's entitlement to occupy to any unreasonable extent.

In restricting or excluding a beneficiary from occupation of the land, trustees may not under any circumstances remove a beneficiary who is already in occupation of the land.

In restricting or excluding a beneficiary from occupation of the land, trustees may not exclude all of the beneficiaries from occupation of the land.

In order to make an application to the court under s.14 of TOLATA, the applicant must have an ________ in the land.

In making a decision under s.14 of TOLATA, the court must take into account the following factors. Please select all that apply.

The intention of the person(s) who created the trust.

The purpose for which the trust property is held.

The welfare of any minor who occupies or might reasonably be expected to occupy the trust property as his or her home.

The interests of any secured creditor of any beneficiary.

In making its decision under s.14 of TOLATA, by reference to the factors outlined in s.15, the court must give priority to the interests of any secured creditor.

True

False

When a trustee in bankruptcy makes an application under s.14 of TOLATA, the court need not take account of the factors given in s.15.

True

False

Which of the following statements is correct?

If the trustee in bankruptcy makes an application to the court under s.14 of TOLATA more than one year after the bankruptcy, then the court must give the interests of the bankrupt's creditors priority, whatever the circumstances.

If the trustee in bankruptcy makes an application to the court under s.14 of TOLATA more than one year after the bankruptcy, then the court must give the interests of the bankrupt's creditors priority, unless there are exceptional circumstances.

If the trustee in bankruptcy makes an application to the court under s.14 of TOLATA more than one year after the bankruptcy, then the court must ignore the interests of the bankrupt's creditors.

If the trustee in bankruptcy makes an application to the court under s.14 of TOLATA more than one year after the bankruptcy, then the court can do as it sees fit.

Under TOLATA 1996, the trustees ___ sell the trust property.

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