Chapter 2 Multiple choice questions

. Which of the following statements is false?

A trustee owns the legal title to property.

The trustee and beneficiary cannot be the same person.

A beneficiary holds the beneficial interest in property.

A person with both the absolute beneficial and legal interest is the absolute owner.

. Which of the following statements is true?

Express trusts are divided into private trusts, implied trusts, and public trusts.

Express trusts are for the benefit of an identified group of people.

Public trusts are implied by law.

Express trusts can be either public or private.

. Which of the following creates a discretionary trust?

To my trustee to hold for my niece Jia I give £100,000 should she pass her exams.

To my trustee I give £100,000 to hold for such of my nieces Jia, Jane, and Julie, as they, at their absolute discretion, shall select to benefit.

To my trustee I give £100,000 to hold for Jane for life then to Jia.

To my trustee I give £100,000 to divide between my nieces Jia, Jane, and Julie.

. Which of the following statements is true?

A protective trust is a type discretionary trust.

A beneficiary who is sui juris can end a protective trust.

If a protective trust ends then the property is held on a fixed trust.

Section 33 Trustee Act 1925 simplified the process for setting up a protective trust.

. Which of the following is not a vested interest?

To Kyle for life then to Lolita.

To my trustees to hold for my children, Luke and Katie.

To Ola, should she reach 25.

To Hector to use for his life then to the RSPCA.

. Which of the following statements are true?

I a resulting trust will be imposed regardless of intention.
ii A resulting trust will be imposed when a person's conscience is affected.
iii A resulting trust will be imposed when there is uncertainty of objects.
iv A resulting trust can be classified as either automatic or presumed.

All

Only i and iv

Only i, iii, and iv

None

. Which of the following situations have not been recognized as constructive trusts?

Breach of pure contractual obligations.

Breach of a fiduciary duty.

Receiving property belonging to another.

Immoral gains.

. Which of the statements is false?

A power can exist under a trust.

Powers can be either trust powers or fiduciary powers.

Trust powers and fiduciary powers are different in nature.

A mere power creates a binding obligation.

. Which of the following statements is most correct? A fiduciary power is held by:

A person who has been given a power of appointment.

A person who has a power of appointment who is in a fiduciary position with the possible beneficiaries.

The settlor.

The beneficiary.

. Which is the correct statement in relation to statutory trusts?

Statutory trusts are imposed by the Law of Property Act 1925.

Statutory trust are only imposed by the courts.

Statutory trusts are imposed when a person wishes to vary a trust.

The Trusts of Land and Appointment of Trustee Act 2000 imposes a trust where joint owners buy land.

Chapter 2 Multiple choice questions

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