Trust Law Quiz

Where there is a strict settlement of land, who is (normally) trustee of the legal estate in settled land?

• The trustees for the purposes of the Settled Land Act.

• The beneficiary who is currently entitled to the profits etc. from the land.

• The beneficiary who holds the fee simple in remainder.

• The settlor's executors.

Where a trust of land is created, but the trustees can only sell the land with the consent of named persons, which of the following propositions is true?

• The named persons must be beneficiaries of the trust.

• The named persons must not be beneficiaries under the trust.

• The named persons can be anybody.

• The named persons can be anybody of full age.

Makoto is expecting to die within the next four months. Today he executed a deed which says 'I hereby convey my house, 48 Crownhills Road, to my son Hayao, on condition that my beloved wife Chihiro can occupy the house for the rest of her life'. What is the result of this deed?

• The house is held on trust by Makoto's executors on trust for Chihiro for her life, remainder to Hayao in fee simple.

• The house is held by Chihiro, on trust for herself for life, remainder to Hayao in fee simple.

• The house is held by Makoto as trustee, on trust for Chihiro for life, remainder to Makoto in fee simple.

• Makoto gets the legal fee simple, but holds it on trust for Chihiro for life, remainder to himself in fee simple.

In 1985, land (purportedly) conveyed to P, Q, R, S, T and U as trustees for sale. Back in 1985, R was only sixteen year old. S died in 2000. Who are now the trustees?

• P, Q, R, T and U.

• P, Q, and R.

• P, Q, T and U.

• P, Q and T.

In what circumstances may trustees act by a majority decision?

• Only if the trust is a charitable trust.

• In no circumstances.

• Only if there is an express clause in the trust documents authorising the trustees to act by a majority.

• If there is an express clause in the trust documents authorising the trustees to act by a majority, or the trust is a charitable trust.

A direct contribution to the purchase price of a property will always give rise to the presumption of a resulting trust.

• True

• False

Which of the following statements is correct? Contributions towards household expenses:

• always give the claimant an equitable interest under an express common intention constructive trust.

• always give the claimant an equitable interest under an inferred common intention constructive trust.

• always give the claimant an equitable interest under a resulting trust.

• None of the above.

In a sole legal owner case, where a non-legal owner claimant is seeking to establish that she or he has an equitable share in the property, the court must undertake a two-stage process. Firstly, it must consider whether the claimant has established that she or he has acquired an equitable interest in the property, by means of a trust. Secondly, it must quantify the claimant's share of that equitable interest. These two stages are entirely separate.

• True

• False

In order to establish an express common intention constructive trust, the claimant must provide which of the following: Please select all that apply.

• Evidence of discussions between the parties of their intention to share the equitable ownership of the property.

• Evidence that the claimant has acted to his or her detriment in the belief that he or she will acquire an interest in the property.

• Evidence of a written agreement between the parties.

• Evidence from a third party witness that the parties agreed to share beneficial ownership of the property.

In order to establish that she or he has suffered detriment in an express common intention constructive trust case, the claimant must provide evidence that she or he has made a direct financial contribution to the purchase price of the property.

• True

• False