Karteikarten
Trusts
Karten in diesem Stapel (32)
- 1What must a declaration of trust contain?1) must demonstrate an intention to impose a binding obligation on the trustee
2) subject matter must be certain
3) beneficiaries must be clearly described or named - 2When can a non-legal owner make a claim?1) parties had a common intention,either express or inferred that the non-legal owner should have an equitable interest in the property
2) non-legal party relied to their detriment on the common intention - 3What factors describe the trustee's power to retire?In the absence of express provisions in trust instrument,a trustee may retire without replacement only if:
1) he leaves in office 2 trustees or a trust corporation
2) co-trustees consent by deed - 4Can a trustee purchase beneficiary's life interest?Yes, provided she pays the full market value and makes full disclosure of all material facts.
- 5Denley TrustA trust which appears to be for a private purpose will succeed if it is actually for the benefit of ascertainable human beneficiaries who may enforce the trust.
- 6What is Cy-pres?Cy-pres is a doctrine which may apply where the charitable purposes of a trust have become impossible or impractical to carry out. It permits the court to direct that the trust property be applied to another charitable purpose as close as possible to the original one rather than allowing the trust to fail.
- 7What factors are considered to be a charitable trust?1) purposes of a trust must be of a charitable nature (as defined in the Charities Act 2011)
2) it must be for public benefit
3) objects must be exclusively charitable - 8What are the requirements for beneficiaries to remove a trustee?1) there must be no person nominated in the trust instrument to appoint new trustees
2) beneficiaries must be of full age and capacity and entitled to trust property
3) beneficiaries act unanimously - 9Which conditions do Presumption of advancement NOT apply?where the contributor was the father or husband of legal owner or acting in loco parentis to legal owner
- 10When does limitation period to issue claim expire?The limitation period for bringing an action against a trustee for breach of trust is 6 years from the date on which the breach was committed.
- 11When can professional trustee charge for services?- when they are not the sole trustee
- co-trustees give their written consent
- there is no express provision in the trust instrument relating to trustee's charges - 12What is the perpetuity period of noncharitable trust?21 years
- 13What is the time limit for bringing a claim under Inheritance Act 1975?An application must be made within 6 months of the issue of grant of representation to the personal representatives.
- 14What are the requirements of variation of a will?To be effective for tax purposes, a variation must be:
- made in writing
- made within 2 years of death
- not made for monetary consideration - 15Strong vs BirdDonor must have intended to make an inter vivos gift. if an intending donor dies before a transfer is made and the donee becomes the donor's personal representative, the transfer is complete in law and the gift is enforceable. The donor must have a continuous unbroken intention to give the gift between the donor's initial intention to give and the donee's appointment as personal representative.
- 16Half secret trustTerms of the trust must be communicated to the trustee at or before the date of will
- 17Saunders Vs Vautier- All the beneficiaries are adults and of sound mind
- all the beneficiaries agree
- all the beneficiaries have an absolute interest - 18What happens when Legal title is registered in the names of 2 cohabitees?- Legal title is held as joint tenants
- Legal title is held as tenants in common
- equitable interest may be held as either joint tenants or tenants in common - 19What type of claim would be preferable for the beneficiaries to bring when the liable trustee is bankrupt?Proprietary claim because the beneficiaries will have priority over the trustee's other creditors
- 20What is the time limit to replace a trustee of he is outside UK?Trustee who remains outside of UK for a continuous period of 12 months may be replaced
- 21What can a co-owner do if they cannot agree how or when to dispose of a property?A trustee or any other person with an interest in property subject to a trust can apply to courts for an order relating to the trustee's duties, including an order to sell.
- 22How may the court impose constructive trust in favour of the non-legal owner?the court will impose a constructive trust in favour of the non-legal owner if the non-legal owner can establish that:
(1) the parties had a common intention, either express or inferred, that the non-legal owner should have an equitable interest in the property;
(2) the non-legal party relied to their detriment on the common intention. The court may infer a common intention from the parties' conduct, such as the non-legal owner making a direct contribution to the purchase price or making mortgage payments. - 23Can trustees delegate their functions to a third party?A trustee may delegate administrative functions and may also delegate investment decisions to an investment manager provided they take account of the requirements laid down in the Trustee Act 2000.
- 24How is a third party liable if they act on a breach of trust?Where a third party acts as an accessory to a breach of trust, he becomes personally liable as if he were a constructive trustee. To establish accessory liability, it must be shown that the third party accessory was dishonest-that is, he did not act as an honest person would in the circumstances. It is not necessary to show that the third party knew that a breach of trust was committed.
- 25Key factors for appointment of trustees1) Once trust is created, settlor has no power to appoint trustees, unless that power is reserved in the trust instrument
2) power to appoint usually rests with continuing/retiring trustees
3) Personal representative of a deceased trustee have the power to appoint only when a sole trustee dies
4) Beneficiaries have no power to appoint trustee unless all are of full age and together absolutely entitled - 26Can a solicitor charge their normal fees for handling trust matters?By statute, a professional trustee may charge their normal professional charges for their services in relation to the trust provided that:
(1) they are not a sole trustee, and
(2) their co-trustee(s) consent in writing to their charges. The trustee has power to appoint a co-trustee and would therefore be able to charge if her co-trustee gave written consent. - 27What is equitable relief?A court can resort to equitable relief only where there is no adequate remedy at law which includes the payment of money.
- 28What is the 'every effort test'?the 'every effort' exception only applies to save an incompletely constituted trust where the settlor has done everything required of her to complete the transfer and has put the asset outside her control. This applies to shares and land where the necessary transfer has been signed and delivered but not yet registered. It is not relevant in the case of chattels where simple delivery is required
- 29What is the inalienability rule?The inalienability rule prevents the capital of a trust from being held indefinitely while the income is applied for some private purpose, but this rule does not apply to charitable trusts
- 30Does the court have the power to replace the trustees?The court has the power to appoint or replace trustees whenever it is expedient to do so, and it is found inexpedient, difficult, or impracticable to do so without the court's assistance.
- 31Difference between constructive trust and resulting trustconstructive trust: A constructive trust arises when it would be unconscionable for the legal owner of property to deny the beneficial interest of another in the property.
resulting trust: When two parties in a marital relationship buy a home to live in, with both parties contributing to the purchase price, but the legal estate is conveyed to only one of them, the courts will usually infer a resulting trust - 32What is the test for unconscionability?A knowing recipient is a person who receives money or property traceable to a breach of trust with knowledge of the breach. The person must have sufficient knowledge as to make it unconscionable for the recipient to retain the property. Unconscionability will be found if the recipient's knowledge falls into one of the following categories:
(1) actual knowledge,
(2) wilfully closing one's eyes to the obvious,
(3) wilfully and recklessly failing to make such inquiries as an honest and reasonable person would make,
(4) knowledge of circumstances which would indicate the facts to an honest and reasonable person
(5) knowledge of circumstances which would put an honest and reasonable person on inquiry.
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- Karteikarten am Trusts, erstellt von Nazneen Iqbal am 20/09/2022.
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- Nazneen Iqbal
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