Chapter 9 Multiple choice questions

. The rule in Saunders v Vautier empowers trust beneficiaries to do many things, but which of the following is not amongst them?

If they are all sui juris and together absolutely entitled to the trust property, they may unanimously require the current trustees to make particular investments.

If they are all sui juris and together absolutely entitled to the trust property, they may unanimously agree to terminate the trust and may demand that the trust property be handed over to them.

If they are all sui juris and together absolutely entitled to the trust property, they may unanimously direct the trustees as to how to deal with the trust property.

If they are all sui juris and together absolutely entitled to the trust property, they may direct the removal and replacement of present trustees.

. (1) Where in the management or ………….of any property vested in trustees, any sale, lease, mortgage, surrender, release, or other disposition, or any purchase, investment, acquisition, expenditure, or other transaction, is in the opinion of the court expedient, but the same cannot be effected by reason of the absence of any power for that purpose vested in the trustees by the trust instrument, if any, or by law, the court may by order confer upon the trustees, either generally or in any particular instance, the necessary power for the purpose, on such terms, and subject to such provisions and conditions, if any, as the court may think fit and may direct in what manner any money authorised to be expended, and the costs of any transaction, are to be paid or borne as between capital and income.
Which of the following is the word missing from the preceding extract from Trustee Act 1925 s.57(1)?

Investment

Distribution

Administration

Resettlement

. In which one of the following scenarios might a testator's will be rectified?

Where, in consequence of inadvertence by the solicitor who drafted it, the court is satisfied that a will is so expressed that it fails to carry out the testator's intentions.

Where, in consequence of the dishonesty of the solicitor who drafted it, the court is satisfied that a will is so expressed that it fails to carry out the testator's intentions.

Where, in consequence of recklessness by the solicitor who drafted it, the court is satisfied that a will is so expressed that it fails to carry out the testator's intentions.

Where, in consequence of the deliberate error by the solicitor who drafted it, the court is satisfied that a will is so expressed that it fails to carry out the testator's intentions.

. Which of the following is not a beneficiary on whose behalf the court may approve an arrangement varying or revoking all or any of the trusts under the Variation of Trusts Act 1958?

A person indirectly having a contingent interest under the trusts who by reason of incapacity is incapable of assenting in person.

A person with a discretionary interest under a protective trusts where the interest of the principal beneficiary has come to an end.

Any person who may become entitled to an interest under the trusts as being at a future date a member of a specified class of persons, and who would not be a member of that class if the said date had fallen at the date of the application to the court.

A person unborn.

. If all of the following are available, who ought to apply for an order varying a trust under the 1958 Act?

The trustees.

Remainder beneficiaries of the trust.

Adult beneficiaries of the trust.

The guardians of minor beneficiaries under the trust.

. Which of the following statements accurately summarises how variations occur under the 1958 Act?

Any variation owes its authority to the statute and the consent of the beneficiaries.

Any variation owes its authority of the settlor's underlying intentions as expressed or implied by the initial settlement.

Any variation owes its authority to the doctrine of Saunders v Vautier.

Any variation owes its authority not to inherent jurisdiction of the court to determine what will or will not be for the beneficiaries affected by the variation.

. According to s. 1(1)(b) of the 1958 Act, the court may, if it thinks fit, approve a variation on behalf of:
any person (whether ascertained or not) who…….become entitled, directly or indirectly, to an interest under the trusts as being at a future date or on the happening of a future event a person of any specified description or a member of any specified class of persons…etc.
What word is missing from the preceding extract from the 1958 Act?

Cannot

Will

Have

May

. Which of the following trusts can be brought to an end today under the Rule in Saunders v Vautier?

A trust in which potential beneficiaries have not yet been born.

A trust under which the beneficiaries are 17 and 18 respectively and become absolutely entitled at the age of 20.

A trust set up for the grandchildren of someone who is still an infant.

A trust under which the beneficiaries are 27 and 28 respectively and become absolutely entitled at the age of 30. Thorpe v Revenue and Customs Commissioners [2009] EWHC 611 (Ch).)

. If a court is satisfied that a will is so expressed that it fails to carry out the testator's intentions, in consequence of a clerical error or a failure to understand his instructions, what can the court require?

Rescission of the will

Rewriting of the will

Intestacy

Rectification of the will

. Which of the following factors is NOT sufficient on its own to justify a variation of trust under the Variation of Trusts Act 1958?

Tax savings

Cheaper life insurance

To protect a spendthrift from their own folly

To give the trustees the benefit of wider powers of investment

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