Chapter 10 Multiple choice questions

. Which of the following ensures that legal title is not inherited by a trustee's next of kin when the trustee dies?

"Intestacy"

"The trust does not fail for want of a trustee"

"Winner stays on"

'Right of survivorship'.

. Which of the following has no power to appoint trustees according to Trustee Act 1925, s. 36?

A person named in the trust deed to carry out the function of appointing trustees.

The beneficiaries.

The existing trustees.

The personal representatives of the last trustee to have died.

. Andrew is named in a will trust as the person able to appoint new trustees. The testator originally appointed three trustees. Which of the following may Andrew appoint to act as a trustee?

The testator

A company

A seventeen-year-old beneficiary

Himself

. According to Trustee Act 1925 s. 41, when will the court appoint new trustees?

Whenever it is expedient to appoint a new trustee or new trustees, and it is found inexpedient, difficult or impracticable so to do without the assistance of the court.

Whenever it is expedient to appoint a new trustee or new trustees, and it is found inexpedient, difficult and impracticable so to do without the assistance of the court.

Whenever it is found inexpedient, difficult or impracticable so to do without the assistance of the court.

Whenever it is expedient to appoint a new trustee or new trustees, and it is found inexpedient, difficult, expensive or impracticable so to do without the assistance of the court.

. Which of the following is most likely to be appointed to act as a trustee of a UK trust?

A beneficiary

A person resident abroad

A foreign national resident in the UK

A beneficiary's spouse

. Which of the following is not a duty of a newly appointed trustee?

To search for suspicious activity in the previous administration of the trust.

To examine all previous trustee appointments (and retirements) in the light of the law then applicable to ensure that they have been validly appointed XR.

To ascertain the terms of the trust.

To secure the transfer of legal title to the trust property into the names of the new and continuing trustees.

. Which of the following persons has the first right to appoint a new trustee to an existing trust?

Where nominated will trustees die before the testator, their personal representatives.

The court.

Personal representatives of the last trustee to die.

The surviving or continuing trustees.

. Which of the following statements accurately summarises the law on trustee retirement?

'A trustee accepts the responsibility for an agreed period'.

'A trustee accepts the responsibility for life'

'A trustee accepts the responsibility for 21 years subject to renewal'.

'A trustee accepts the responsibility for a reasonable period'.

. Which of the following is not a condition of retirement under section 39 of the Trustee Act 1925?

The trustee must retire by deed.

The trustee must obtain the written consent of the other trustees.

The trustee must obtain the consent of any person who is empowered to appoint new trustees.

The retirement will only be valid if two trustees remain or a trust corporation remains after the retirement.
If any one of these conditions is not met the retirement will not be effective to discharge the trustee from their obligations under the trust.

. In this chapter we encountered the definition of "overreaching". Which of the following is the correct definition?

This process enables a purchaser of land to take free of the beneficiaries' interests provided he pays two trustees and the trustees include a trust corporation.

This process enables a purchaser of land to take free of the beneficiaries' interests provided he pays all the trustees and the trustees are at least two in number or a trust corporation.

This process enables a purchaser of land to take free of the beneficiaries' interests provided he pays at least two trustees or a trust corporation.

This process enables a purchaser of land to take free of the beneficiaries' interests provided he pays all the trustee or trustees

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