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Return to Land Law: Directions 8e Resources
Chapter 11 Scenario questions
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Claudette is the beneficiary of a trust of land, and Maximilian is the trustee. Claudette and Maximilian recently had an argument, and are now, in her words, 'at war'. Claudette is aware that her position as a beneficiary is a precarious one, and wishes to know more about what Maximilian could do. What powers does Maximilian have as a trustee? Select all that apply.
He has the power to buy more land, but must take Claudette's interests in mind
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He has the power to sell, but must take Claudette's interests in mind
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He has the power to rent out the land, without taking Claudette's interests in mind
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He has the power to convey the property to Claudette's sister (also a beneficiary), without taking Claudette's interests in mind
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Specifically, Claudette is worried that Maximilian may try and partition the land, and turn it into smaller plots. The land itself is a large Georgian manor, and it appears to be practical to partition it into a number of maisonettes. Would Maximilian have the power to partition the manor?
Yes, but only with Claudette's consent
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No
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Yes, but only with Claudette's consent or with the court's consent
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Yes, but only with the court's consent
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Claudette, satisfied that it will be tricky for Maximilian to partition the manor, also wishes to know about her right to live in the manor. She is currently at university, and so is not occupying the house. However, she is due to undertake an online masters course from the next academic year. The house itself has 14 bedrooms, 3 kitchens, 4 bathrooms and a soundproofed dungeon. Will Claudette have a right to occupy the manor?
Yes, as it is unlikely that the courts will consider the manor unsuitable
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No, as it is likely that the courts will consider the manor unsuitable
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She has no rights to occupy, irrespective of characteristics of the property
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She has the right to occupy, but only if there are 4 beneficiaries or more
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Things between Claudette and Maximilian have now come to a head with neither of them being able to agree on anything, and Maximilian has stated that he is going to use s14 Trusts of Land and the Appointment of Trustees Act 1996 to resolve the issues once and for all. What powers does the court have under s14 TOLATA 1996? Select all that apply.
Order the gratuitous transfer of the absolute title to the land to a trustee who is not also a beneficiary
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Order the sale of the land to other beneficiaries at a court appointed price
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Dispense with the need for Maximilian to obtain the consent of Claudette
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Make a declaration of Claudette's interests in the land
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Finally, Claudette is concerned about what factors the court will take into account should Maximilian seek to utilise s14 TOLATA 1996. She has a 16 year old child, the manor is subject to a mortgage that is not in arrears, and the manor was placed on trust to 'enable my [Claudette's father] progeny to live in the family pile for eternity'. What factors will the court take into account when considering exercising its s14 TOLATA 1996 powers?
The mortgage company
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Claudette's 16-year-old child
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Maximilian's bruised ego
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The intentions of Claudette's father
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