* not completed

. The normal purpose of a trust is to…

Provide financial benefits for the beneficiaries correct incorrect

Protect beneficiaries from any financial loss correct incorrect

Preserve the trust property for as long as the trust lasts correct incorrect

To ensure that all the beneficiaries are satisfied with their share correct incorrect

* not completed

. The major reform of the law in the Trustee Act 2000 is that…

Trustees now have a duty of care correct incorrect

Trustees may delegate certain functions to agents correct incorrect

Trustees are no longer restricted in the type of investments that they can make correct incorrect

Trustees must seek advice correct incorrect

* not completed

. Diversification means…

Buying more than one type of share correct incorrect

Investing in land correct incorrect

Putting the trust fund into different types of investment correct incorrect

Investing all the trust fund correct incorrect

* not completed

. Which new type of investment is allowed by the Trustee Act 2000?

Shares correct incorrect

Freehold and leasehold land in England and Wales correct incorrect

Mortgage loans correct incorrect

Debentures correct incorrect

* not completed

. How can the terms of the Trustee Act 2000 be modified or excluded?

By express words in the trust instrument correct incorrect

If the trustees insist correct incorrect

By order of the court correct incorrect

With the agreement of all the beneficiaries correct incorrect

* not completed

. Which of the following options is correct? Professional trustees:

Owe the same duty of care as lay (non-professional) trustees correct incorrect

Are protected from liability by exclusion clauses in the trust instrument correct incorrect

Owe a lower duty of care than lay (non-professional) trustees correct incorrect

Owe a duty of care determined by any special knowledge or experience that they have correct incorrect

* not completed

. If a trustee is in breach of trust…

They must restore any lost assets to the trust estate correct incorrect

Compensate the beneficiaries for their loss correct incorrect

Pay damages for the loss caused by their breach of trust correct incorrect

Pay fair and reasonable compensation correct incorrect

* not completed

. Trustees:

Are not permitted to make ethical investments correct incorrect

Are allowed to make any investments that they choose, including ethical investments correct incorrect

Must only pursue the best financial interests of the beneficiaries correct incorrect

Are allowed to make ethical investments as long as they are satisfied that this would not involve a risk of significant financial detriment correct incorrect

* not completed

. Trustees may employ agents:

If to do so would be normal business practice correct incorrect

Whenever they want and for whatever task that they want correct incorrect

For any function except the distribution of trust assets correct incorrect

Only if authorized by the court correct incorrect

* not completed

. Trustees are:

Liable for all acts and defaults of their agents correct incorrect

Liable for any acts or defaults of their agents that the trustees should have detected with reasonable care and skill correct incorrect

Not liable for any acts or defaults of their agents unless the trustees themselves are guilty of willful default correct incorrect

Not liable for any acts or defaults of their agents correct incorrect

* not completed

. Which of the following is correct? Trustees:

Must explain all their decisions to their beneficiaries correct incorrect

Need only explain decisions that directly affect the beneficiaries' financial interests correct incorrect

Are not obliged to give any reasons for their decisions to the beneficiaries correct incorrect

Are not obliged to give any reasons for their decisions, but if they do give a reason, then the court can review the accuracy of their decision correct incorrect

* not completed

. Which of the following is correct? Beneficiaries are entitled to see:

All the documents that the trustees produce while running the trust correct incorrect

They are entitled to see nothing: what they see is in the discretion of the trustees correct incorrect

They are entitled to see nothing: what they see is in the discretion of the court correct incorrect

The trust accounts correct incorrect