Try the multiple choice questions below to test your knowledge of this chapter.
Get Started!Correct. Feedback: C is the correct answer. An infant/minor cannot be appointed as trustee of an express trust or charitable trust. However, in Re Vinogradof, a grandmother transferred stock into the joint names of herself and her granddaughter, Laura Jackson, aged 4. The grandmother continued to receive the dividends until her death. It was held that Laura held the stock on presumed resulting trust for her grandmother's estate.
Incorrect. Feedback: C is the correct answer. An infant/minor cannot be appointed as trustee of an express trust or charitable trust. However, in Re Vinogradof, a grandmother transferred stock into the joint names of herself and her granddaughter, Laura Jackson, aged 4. The grandmother continued to receive the dividends until her death. It was held that Laura held the stock on presumed resulting trust for her grandmother's estate.
Correct. Feedback: A is the correct answer. Section 34 of the Trustee Act 1925 (as amended by the Trusts of Land & Appointment of Trustees Act 1996) provides that where land is held on trust, the maximum number of trustee is four.
Incorrect. Feedback: A is the correct answer. Section 34 of the Trustee Act 1925 (as amended by the Trusts of Land & Appointment of Trustees Act 1996) provides that where land is held on trust, the maximum number of trustee is four.
Correct. Feedback: B is the correct answer. The reason for staying outside the United Kingdom is irrelevant.
Incorrect. Feedback: B is the correct answer. The reason for staying outside the United Kingdom is irrelevant.
Correct. Feedback: C is the correct answer. Thus a trustee would be unfit to act as a trustee if he had been convicted of an offence involving dishonesty.
Incorrect. Feedback: C is the correct answer. Thus a trustee would be unfit to act as a trustee if he had been convicted of an offence involving dishonesty.
Correct. Feedback: C is the correct answer. This links with the maximum number of trustees permitted for a trust of land.
Incorrect. Feedback: C is the correct answer. This links with the maximum number of trustees permitted for a trust of land.
Correct. Feedback: A is the correct answer. Section 40 of the Trustee Act 1925 allows for automatic vesting by the deed of appointment of the trustee. This does not apply to all property, e.g. it would not apply to stocks and shares which have to be transferred to the trustee in the normal way.
Incorrect. Feedback: A is the correct answer. Section 40 of the Trustee Act 1925 allows for automatic vesting by the deed of appointment of the trustee. This does not apply to all property, e.g. it would not apply to stocks and shares which have to be transferred to the trustee in the normal way.
Correct. Feedback: C is the correct answer. Tom cannot use s 39 as that only applies when at least two trustees remain. He would have to retire under s 36 with a new trustee being appointed in his place.
Incorrect. Feedback: C is the correct answer. Tom cannot use s 39 as that only applies when at least two trustees remain. He would have to retire under s 36 with a new trustee being appointed in his place.
Correct. Feedback: B is the correct answer. A trustee has a duty not to make an unauthorised profit. He could only keep his director's fees in these circumstances if he was authorised to do so by the trust instrument.
Incorrect. Feedback: B is the correct answer. A trustee has a duty not to make an unauthorised profit. He could only keep his director's fees in these circumstances if he was authorised to do so by the trust instrument.
Correct. Feedback: A is the correct answer. The beneficiaries may, if they wish, ask the court to set the sale to the trustee aside provided they act within a reasonable time.
Incorrect. Feedback: A is the correct answer. The beneficiaries may, if they wish, ask the court to set the sale to the trustee aside provided they act within a reasonable time.
Correct. Feedback: B is the correct answer. The full standard investment criteria are that the trustee must have regard to the suitability to the trust of investments and the need for diversification of investments.
Incorrect. Feedback: B is the correct answer. The full standard investment criteria are that the trustee must have regard to the suitability to the trust of investments and the need for diversification of investments.