Chapter 5 Multiple choice questions

. Which statement correctly identifies the requirements to make a valid will?

S9 Wills Act 1837 requires that the will be in writing; signed by the testator in the presence of witnesses who sign in the presence of the testator and of each other.

S9 Wills Act 1837 requires that the will be in writing and signed by the testator and the beneficiaries.

S9 Wills Act 1837 requires that the will be in writing; signed by the testator or someone at his direction in his presence, in the presence of witnesses who sign in the presence of the testator and of each other.

A valid will can be made orally.

. Which of the following statements are valid reasons for the requirement of formalities in relation to the creation and disposition of equitable interests?
i to prevent fraud against the beneficiary
ii to prevent fraud by the trustee
iii to hamper the creation of equitable interests
iv to create certainty of transactions
v to allow the correct allocation of tax liabilities.

i, ii, iv, and v only

All of them

i, ii, and v only

None of them

. Can a valid trust of land be declared orally?

Yes.

No, the trust is void until it is in writing.

Yes, but it must be evidenced in writing before it becomes enforceable and signed by the person able to declare the trust.

Yes, but it must be evidenced in writing at before it becomes enforceable and signed by the person able to declare the trust or their agent.

. If a person wanted to create a trust of land with a third party acting as trustee what legal requirements should they comply with?

They must declare the trust and sign a document which is evidence of the trust.

They must ensure the trustee is aware of the trust and create it in compliance with s53 (1) (c) LPA 1925.

They must transfer the legal title to the property by deed in compliance with s52 LPA 1925 and register the transfer s27 Land Registration 2002 and also ensure that they comply with s53 (1) (b) LPA 1925.

They must ensure the trustee is aware of the trust and create it in compliance with s53 (1) (b) LPA 1925.

. Which statement most accurately states the formalities required for the creation of a trust in chattels?

The trust must be declared in writing and comply with s53 (1) (b) LPA 1925.

The trust must be declared orally and then recorded in a deed. It is unenforceable until this is done.

Chattels cannot be subject to a trust.

There are no formalities for the creation of a trust in chattels; Paul v Constance. The three certainties and rule of inalienability will need to be considered.

. Which statement correctly reflects the requirements of s53 (1) (c) LPA 1925

For a disposition of an existing equitable interest in any property a valid transfer must be in writing and signed by the transferor or their agent.

The transfer must be evidenced in writing which is signed by the settlor.

For a disposition of an existing equitable interest in land a valid transfer must be in writing and signed by the transferor or their agent.

That to create a trust in property you must complete a deed.

. What are the ways to benefit another with an equitable interest according to Timpson's Executors v Yerbury [1936] 1 KB 645?

- Directly assign to a third party
- Contract for valuable consideration to assign to another.

- Contract for valuable consideration to assign to another
- Direct the trustees to hold for another
- Declare that the interest is held by the beneficial owner on trust for another.

- Directly assign to a third party
- Contract for valuable consideration to assign to another
- Direct the trustees to hold for another
- Declare that the interest is held by the beneficial owner on trust for another.

- Contract for valuable consideration to assign to another
- Declare that the interest is held by the beneficial owner on trust for another.

. Which case illustrates that the disposition of a subsisting equitable interest must be made in writing and that failure to do so makes the transaction void?

Saunders v Vautier (1841) 10 LJ Ch 354

Vandervell v IRC #2 1974 CH 269

S53 (1) (c) Law of Property Act 1925

Grey v IRC [1960] AC 1 HL

. Which statement correctly states the exception to s53 (1) (c) LPA 1925 identified in Vandervell v IRC 1960?

When the owner of a beneficial interest under a trust, who is sui juris, directs the trustee to transfer the legal title to a third party, intending that at the same time the equitable title also transfers to the same third party, there is no need to comply with s53 (1) (c) LPA 1925.

There are no exceptions to the requirements of s53 (1) (c).

When the owner of a beneficial interest under a bare trust, who is sui juris and absolutely entitled, directs the trustee to hold the beneficial interest for a third party there is no need to comply with s53 (1) (c) LPA 1925.

When the owner of a beneficial interest under a bare trust, who is sui juris and absolutely entitled, directs the trustee to transfer the legal title to a third party, intending that at the same time the equitable title also transfers to the same third party, there is no need to comply with s53 (1) (c) LPA 1925.

. What principle of law could you take from the case of Grainge v Wilberforce (1889) 5 TLR 436?

The case illustrates that equitable interests cannot be held on trust.

The case illustrates that in creating a sub-trust where the original beneficial owner retains some control over that property this is not a disposition of an equitable interest. However, if they have not control it is effectively a disposition and should comply with s53 (1) (c).

The case illustrates that in creating a sub-trust it is not a disposition of an equitable interest which would need to comply with s53 (1) (c).

The case illustrates that in creating a sub-trust where the original beneficial owner retains some control over that property this is still a disposition of an equitable interest and should comply with s53 (1) (c).

Chapter 5 Multiple choice questions

Quiz Content