Chapter 4 Scenario Questions

In his will, Andrew provided for the following gift: £1,000 to his trustees to be divided in their absolute discretion among his relatives who were active in raising awareness about climate change.
Select the correct answer as to the validity of the gift.

'Relatives' is conceptually uncertain and so the trust would fail.

'Relatives' fails to meet the 'fixed list test' and so the trust would fail.

'Relatives' is conceptually certain but 'active in raising awareness about climate change' is evidentially uncertain and so the trust would fail.

'Relatives' and 'active in raising awareness about climate change' are both sufficiently certain that the trust would succeed.

Angela owns 100 bottles of beer and declares that she holds 50 of them on trust for Beatriz.
Select the correct answer as to the validity of the trust.

The trust is valid as Beatriz is able to select which 50 of the bottles she owns beneficially.

The trust is valid as the court would be able to select which 50 of the bottles are held on trust for Beatriz.

The trust is valid because all of the bottles are identical and so it does not matter which 50 are held on trust.

The trust is not valid because all of the bottles are not identical and so it is not clear which of the 50 are held on trust.

Aadarshini owns 1,000 shares in X Ltd. She declares that she holds 500 of them on trust for Ben. Aadarshini sells 500 of the shares to Carolina and uses the proceeds from the sale to buy shares in Y Ltd. The remaining shares in X Ltd become worthless and the shares in Y Ltd treble in value.
Select the correct answer as to the trust of the shares for Ben.

There is no valid trust.

There is a valid trust. Aadarshini sold her own 500 shares and so she owns the valuable shares in Y Ltd. The remaining 500 shares in X Ltd that Ben owns beneficially are worthless.

There is a valid trust. Aadarshini sold the 500 shares she held on trust for Ben and so holds the valuable shares in Y Ltd on trust for Ben.

There is a valid trust. Aadarshini sold 250 of the shares she owns beneficially and 250 of the shares she held on trust for Ben so they each have half of the beneficial interest of the valuable shares in Y Ltd.

Giovanni's will creates successive interests in £100,000 with a life interest for his daughter Harriet, then for her daughter Isobel for life with remainder to Isobel's first-born child, as long as she gets a degree in Architecture.
Is the will invalid due to the perpetuity rule?

There is a chance that the property might vest outside the perpetuity period and so the interest in the property is void.

As long as Isobel's first child is born before the end of the perpetuity period, then her interest will be valid.

Isobel must get an Architecture degree before the end of the perpetuity period in order for the interest to be valid.

As long as Isobel gets a degree it does not matter which subject it is in, as long as she does so before the end of the perpetuity period.

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