Chapter 16 Self-Test Questions

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When will the court confer powers on a trustee that are not found in the trust instrument?

When it is fair to do so. correct incorrect

When an injustice would be caused to the beneficiaries in not doing so. correct incorrect

When there is an inconvenience for the beneficiaries. correct incorrect

When it is expedient to do so. correct incorrect

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'The Variation of Trusts Act 1958 affords the court the power to alter any aspect of the trust, except for the beneficial interests.'

True. correct incorrect

False. correct incorrect

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Why was the Variation of Trusts Act 1958 necessary?

Too many beneficiaries complained about the terms of the trust instrument. correct incorrect

To give the court the power to consent to the variation of the trust on behalf of beneficiaries who are unable to consent. correct incorrect

To recognize that settlors often make mistakes in drafting trust instruments. correct incorrect

To codify the rule in Saunders v Vautier. correct incorrect

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'The court will not approve an application to vary the trust if its sole objective is to reduce the tax consequences of the trust.'

True. correct incorrect

False. correct incorrect

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When does the court's approval of a scheme of variation become effective?

It is automatically effective. correct incorrect

It is effective once approved by the settlor. correct incorrect

It is effective once all of the beneficiaries have agreed. correct incorrect

It is effective only once approved by the trustees. correct incorrect