Self-test questions: The Three Certainties and Powers of Appointments

. Which of the following are the three certainties identified by Lord Langdale MR in Knight v Knight?

Certainty of object

Certainty of intention

Certainty of subject matter

Certainty of beneficiary

. According to Megarry J in Re Kayford, certainty of intention will only be present if the word 'trust' is used. Is this statement true or false?

True

False

. Which statement best summarises the requirement for certainty of intention?

Certainty of intention will be present when it is established there was an intention to impose a moral obligation upon the intended trustee

Certainty of intention will be present when precatory words are used

Certainty of intention will be present when it is established there was an intention to impose a legal obligation upon the intended trustee

Certainty of intention will be present when the word 'trust' is used

. Which description best describes a precatory word?

A word or phrase that expresses a mandatory intention

A word or phrase that provides a definition to the trust assets

A word or phrase that provides a definition of the beneficiaries

A word or phrase that expresses a wish or desire

. Which of the following is not an example of a precatory word?

Desire

Confidence

Hope

Will

. According to Lord Browne-Wilkinson in Westdeutsche Landesbank v Islington, a trust must be in relation to what type of property?

Random property

Specific property

Indefinable property

Non-existent property

. In the case of Boyce v Boyce, it was held that the death of the elder sister and her inability to choose a house did not impact upon there being certainty of subject matter, and the younger sister was able to choose the property she preferred. Is this state true or false?

True

False

. According to Re London Wine and Re Goldcorp, what are the requirements for tangible property to form certainty of subject matter?

It must be segregated from a larger bulk

It does not have to segregated from a larger bulk

It can never form the subject matter of a trust

It has the same requirements as intangible property

. According to Hunter v Moss, what are the requirements for intangible property to form certainty of subject matter?

It can never form the subject matter of a trust

It must be segregated from a larger bulk

It has the same requirements as tangible property

It does not have to segregated from a larger bulk

. In Palmer v Simmonds, the term 'bulk of my residuary estate' was held to be imprecise for what reason?

There is no such thing as a residuary estate

There is no clear definition of the term bulk

There were no assets to form a residuary estate

The settlor could not be identified

. What was held in the case of Re Golay in relation to the term a 'reasonable income'?

That it was sufficiently specific as the term could be objectively quantified

That it was insufficiently specific as the term could not be objectively quantified

That it meant £56,000 per annum

That it must be interpreted as the school fees for the UK's cheapest public school

. Which description best summarises the need for conceptual certainty within the certainty of object?

The sufficiency of evidence to prove an individual falls within the class of beneficiaries

The clarity of definition given to the trust's assets

The clarity of definition given to the class of beneficiaries

The clarity of definition given to the settlor's intentions

. Which description best summarises the need for evidential certainty within the certainty of object?

The clarity of definition given to the class of beneficiaries

The lack of need for evidence to prove an individual falls within the class of beneficiaries

The sufficiency of evidence to prove an individual falls within the class of beneficiaries

The test for certainty of object for mere powers

. What is the test for certainty of objects for fixed trusts?

There is no test

The 'is or is not' test

The 'given postulant' test

The 'complete list' test

. What is the test for certainty of objects for powers of appointment?

The 'is or is not' test

The 'given postulant' test

The 'complete list' test

There is no such thing as a power of appointment

. How many different interpretations of the test for certainty of objects for discretionary trusts were provided in Re Baden's Deed Trust (No.2)?

4

2

3

8

. What is the test for certainty of objects for discretionary trusts?

The 'yay or nay test

Unconscionability

The 'complete list' test

The 'given postulant' test

. What order can trustees seek if they are unable to ascertain the whereabouts of, or continued existence of, a beneficiary?

Re Benjamin order

Mandatory injunction

American Cyanamid v Ethicon order

Re Tuck order

. According to Re Tuck, how can uncertainty of object be resolved?

Such uncertainty cannot be resolved

Only by judicial interpretation

By asking the settlor's neighbour's

The appointment of an expert

. What are the grounds on which the courts can strike down a trust even though there is certainty of object?

Administrative unworkability and capriciousness

Public health

Through mere judicial discretion

It is not possible to strike down a trust if there is certainty of object

. Charles wishes to leave some money for his grandchildren, and wants his daughter to act as trustee. However, he does not know how to phrase his wish. His current draft states "I … that my daughter holds £10,000 for each of my grandchildren until they each turn 21." Which term should be used to ensure that there is certainty of intention?

Hope

Require

Desire

Wish

. In the end Charles rewrites the clause to state "I leave £40,000 to my daughter on trust, and hope that she will give the each of my grandchildren £10,000 when they turn 21." What will effect of the new clause be in regard certainty of intention?

The use of the word trust will mean there is certainty of intention

Both the use of the word trust and the use of the word hope will mean there is certainty of intention

The use of the word trust is precatory and so there is no certain of intention

The use of the word trust will not mean there is certainty of intention as the word hope is precatory

. Xenophon wishes to leave some of his prized marbles to his nieces and nephews. There are a wide array of marbles in the collection, but 54% of them are uniform in colour – honey beam – but are of different sizes. He wants to leave the 'majority' of the marble collection to them. Which of the following best describes the actions he should take to ensure there is certainty of subject matter?

Segregate the marbles he wishes to leave his nieces and nephews from the general collection

State that he wishes to leave all of the marbles to his nieces and nephews

State that he wishes to leave the bulk of the marbles to his nieces and nephews

State that he wishes to leave the majority of the marbles to his nieces and nephews

. Gurpreet recently died and left 3 houses to her two daughters in her will – each daughter was to choose their favourite house which they would then keep. Sadly the youngest daughter, who was to have first pick of the houses, passed away 17 mins before her mother. Will there still be certainty of subject matter present?

Yes

No

. Baldwin wishes to leave half of his shares in PineTreeFurniture.org to his former girlfriend, Winifred. His shares are in 4 different classes, and he also has shares in OakTreeFurniture.org. Which of the following best describes what Baldwin will need to do to ensure there is certainty of subject matter?

Baldwin can merely refer to 'half of his shares'

Baldwin will need to segregate the shares he wishes to leave as it cannot be known what classes of share or percentage of each class of share he wishes to Winifred

Baldwin will not need to segregate the shares he wishes to leave as they are intangible property

Baldwin can merely refer to 'my shares'

. Mohammed wishes to leave £40,000 to 3 of his 4 children. What will he need to do to ensure there is certainty of object?

List each of the 3 children by name

Refer to 'most of my children'

Refer to '3 of my 4 children'

State that the trustee 'will know who I like the most'

. Josiah wishes to leave some money to the 4 people he met at a festive 6 months ago. However, each of them used nicknames, and he only remembers the full name of one individual. Moreover, he could have imagined 2 of the people. What equitable mechanism should be used?

Fixed trust

Discretionary trust

Special power

Mere power

. Juan wants to leave £77,000 to the former school children at the Church of the Shiny Colander School. However, the school's records have recently been burnt. However, each former student, upon graduating, was given a uniform silver colander as a leaving present. Will the bequest still have evidential certainty?

Yes – the colanders will be sufficient evidence of their attending the school

No – there must be detailed written records provided to evidence who did attend the school

No – they would need a colander and picture in a classroom as a school child

No – because the school is not a registered charity

. Osei wishes to leave £1,000,000 to the 'purest Buddhist in Chingford'. Who would be the most appropriate person to appoint as the expert to determine who is the 'purest Buddhist in Chingford'?

A local rabbi

A local Methodist priest

A local fishmonger

The chief Buddhist monk in the UK

. Prunella is on her deathbed, and wishes to leave £600,000,000,000 to the 'inhabitants of the World's megacities'. On which ground(s) is it likely that the bequest would fail?

Capriciousness and administrative unworkability

Public policy

Lack of intention and the of precatory words

Lack of a human beneficiary

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