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Trust Setup For Sanjay
Summary
A trust creating a life interest in favor of Rita, with the remainder to Marco, aligns with Sanjays wishes for his estate. Mattia and Fatima have vested interests in Silvanos estate, while Zainabs interest is contingent. Under Saunders v Vautier, a trust can be ended if all beneficiaries are adults and agree. A valid trust declaration requires clear terms, trustees, and beneficiaries. The perpetuity rule is satisfied when conditions are met within a lifetime plus 21 years. Trustees must avoid conflicts of interest, and their liability depends on adherence to the Trustee Act 2000. Raul can retain a directors salary if authorized by the trust instrument. Trustees have discretion to apply trust income for beneficiaries maintenance and education.Full Conversation
Silvano, who died last month, left a valid will leaving his residuary estate to trustees on trust for such of Mattia, Fatima and Zainab as should attain the age of * and, if more than one, in equal shares.
On Silvano’s death, Mattia is 28 years old, Fatima is 26 years old, and Zainab is 18 years old.
Which ONE of the following statements is CORRECT?
Mattia has a vested interest, Fatima and Zainab have contingent interests.
Mattia, Fatima and Zainab all have contingent interests.
Mattia, Fatima and Zainab all have vested interests.
Mattia and Fatima have vested interests, and Zainab has a contingent interest.
Mattia and Fatima have vested interests, and Zainab has a contingent interest. Since Mattia and Fatima have already attained the age of *, they have vested interests in the residuary estate. Zainab, who is *, has a contingent interest as she has not yet reached the age of *.
Do you have any other questions or need further clarification?
Do you have any other questions or need further clarification?
Which ONE of the following trusts can be ended under Saunders v Vautier?
'On trust for Javier absolutely’ (Javier is 17 years of age and wishes to end the trust).
‘On trust for my grandchildren whenever born’ (the settlor has a 40 year old son and an 18 year old grandchild. Both wish to end the trust).
‘On trust for Ursula if she attains the age of *’ (Ursula has just turned * and wants to end the trust).
‘On trust for Adler for life, remainder to his daughter’ (Adler and his daughter are over the age of * and want to end the trust).
The trust that can be ended under Saunders v Vautier is:
- ‘On trust for Adler for life, remainder to his daughter’ (Adler and his daughter are over the age of * and want to end the trust).
Both beneficiaries are adults and can agree to end the trust.
Do you have any other questions?
- ‘On trust for Adler for life, remainder to his daughter’ (Adler and his daughter are over the age of * and want to end the trust).
Both beneficiaries are adults and can agree to end the trust.
Do you have any other questions?
Which ONE of the following trusts can be ended under Saunders v Vautier?
'On trust for Javier absolutely’ (Javier is 17 years of age and wishes to end the trust).
‘On trust for my grandchildren whenever born’ (the settlor has a 40 year old son and an 18 year old grandchild. Both wish to end the trust).
‘On trust for Ursula if she attains the age of *’ (Ursula has just turned * and wants to end the trust).
‘On trust for Adler for life, remainder to his daughter’ (Adler and his daughter are over the age of * and want to end the trust).
The trust that can be ended under Saunders v Vautier is:
- ‘On trust for Adler for life, remainder to his daughter’ (Adler and his daughter are over the age of * and want to end the trust).
Both beneficiaries are adults and can agree to terminate the trust.
Do you need any further clarification or assistance with another matter?
- ‘On trust for Adler for life, remainder to his daughter’ (Adler and his daughter are over the age of * and want to end the trust).
Both beneficiaries are adults and can agree to terminate the trust.
Do you need any further clarification or assistance with another matter?
Which ONE of the following creates a valid declaration of trust?
‘I give my jewellery to my daughter Josepha, hoping she will pass on some of it to her daughters’.
‘I leave my four paintings to my trustees on trust to distribute fairly to my three daughters, contingent on them reaching 21 years of age’.
‘I leave * out of the * ordinary shares I own in Gupta Ltd to my trustees to hold for my daughter Eliana’.
‘I leave the residue of my estate to the most handsome of my friends’.
The statement that creates a valid declaration of trust is:
- ‘I leave my four paintings to my trustees on trust to distribute fairly to my three daughters, contingent on them reaching 21 years of age’.
This statement clearly establishes trustees, beneficiaries, and the conditions under which the beneficiaries will receive the trust property.
Do you have any further questions or need more details on this topic?
- ‘I leave my four paintings to my trustees on trust to distribute fairly to my three daughters, contingent on them reaching 21 years of age’.
This statement clearly establishes trustees, beneficiaries, and the conditions under which the beneficiaries will receive the trust property.
Do you have any further questions or need more details on this topic?
Colette has just won the lottery and wants to set up a trust.
Which ONE of the following statements satisfies the perpetuity rule?
‘£*,* to be held on trust for my great great grandchildren contingent on them reaching the age of 60 years old.’
‘£*,* to be held on trust for the maintenance of my pet snakes.’
‘£*,* to be held on trust to provide an exotic flower arrangement each week for the three employees of TropicalTrips Ltd (the company is not a registered charity).’
‘£*,* to Ahmed and Carol, contingent on them reaching the age of 25 years.’
The statement that satisfies the perpetuity rule is:
- ‘£*,* to Ahmed and Carol, contingent on them reaching the age of 25 years.’
This is because the perpetuity period generally allows for conditions to be fulfilled within the lifetime of individuals plus 21 years.
Do you have any other questions or need further assistance?
- ‘£*,* to Ahmed and Carol, contingent on them reaching the age of 25 years.’
This is because the perpetuity period generally allows for conditions to be fulfilled within the lifetime of individuals plus 21 years.
Do you have any other questions or need further assistance?
Yagoda is a trustee of the Nikolova Family Trust. She buys some land belonging to the trust, paying full market price.
Which ONE of the following statements is CORRECT?
Yagoda has not breached any of her duties and the sale stands.
Yagoda has breached her fiduciary duty and the sale is voidable by the beneficiaries.
Yagoda has not breached her fiduciary duty as she paid full market price for the land.
Yagoda has breached a trust duty and the sale is void.
Yagoda has breached her fiduciary duty and the sale is voidable by the beneficiaries.
In England, trustees are generally prohibited from purchasing trust property due to the conflict of interest, even if they pay full market price. The sale can be challenged by the beneficiaries.
Do you need any further clarification or assistance with another topic?
In England, trustees are generally prohibited from purchasing trust property due to the conflict of interest, even if they pay full market price. The sale can be challenged by the beneficiaries.
Do you need any further clarification or assistance with another topic?
Aynanda created a trust this year for the benefit of her children Lerato and Sipho, contingent on them reaching 25 years of age.
Lerato is now 18 years old and Sipho is 15 years old. The trust instrument does not alter the trustees’ statutory powers.
Which ONE of the following statements is CORRECT?
The trustees have discretion to apply trust income relating to his share for the maintenance, education or benefit of Sipho.
The trustees have discretion to apply trust income for the maintenance, education or benefit of Lerato and Sipho.
The trustees have power to advance capital to Lerato. They can advance him a maximum of half his share.
The trustees must advance to Lerato the whole of his share of capital now.
The correct statement is:
- The trustees have discretion to apply trust income for the maintenance, education or benefit of Lerato and Sipho.
This is in line with the statutory powers given to trustees under the Trustee Act * in England.
Do you need any additional information or assistance with another matter?
- The trustees have discretion to apply trust income for the maintenance, education or benefit of Lerato and Sipho.
This is in line with the statutory powers given to trustees under the Trustee Act * in England.
Do you need any additional information or assistance with another matter?
Last year the trustees of the Kruger trust, valued at £* million, delegated their investment duties to Alejandro Garcia, an independent financial adviser. The trustees have now discovered that Alejandro’s management had caused substantial losses to the trust fund.
Which ONE of the following statements is CORRECT?
The trustees are vicariously liable for the loss caused by Alejandro.
The trustees are liable if they breached their duty of care on the appointment of Alejandro or any other duty under the Trustee Act *.
The trustees are never liable for an agent’s default.
The trustees are always liable for an agent’s default in cases of collective delegation.
The correct statement is:
- The trustees are liable if they breached their duty of care on the appointment of Alejandro or any other duty under the Trustee Act *.
Would you like more information on the Trustee Act * or have any other questions?
- The trustees are liable if they breached their duty of care on the appointment of Alejandro or any other duty under the Trustee Act *.
Would you like more information on the Trustee Act * or have any other questions?
Which ONE of the following statements is WRONG?
Trustees’ liability for breach of trust is joint and several.
Trustees are automatically liable for the defaults of their co-trustees.
Trustees who are sued for breach of trust can seek an indemnity from a co-trustee who has been fraudulent.
A trustee is liable if his failure to watch over the conduct of his co-trustees causes loss.
The statement that is WRONG is:
- Trustees are automatically liable for the defaults of their co-trustees.
In England, trustees are not automatically liable for their co-trustees' defaults unless they failed to exercise proper care and supervision.
Do you need further details or have any other questions?
- Trustees are automatically liable for the defaults of their co-trustees.
In England, trustees are not automatically liable for their co-trustees' defaults unless they failed to exercise proper care and supervision.
Do you need further details or have any other questions?
A trust holds *% of the shares in a private company. At a shareholder’s meeting, Raul, one of the trustees, uses the votes attached to the trust’s shareholding to become a director of the company. The company pays him a salary.
Which ONE of the following statements is CORRECT?
Raul has not placed himself in a position of a conflict of interest.
Raul can keep the salary if he is a professional trustee.
Raul can keep the director’s salary if this is authorised by the trust instrument.
Raul can keep the director’s salary as the trust could not have earned the salary by becoming a director.
Raul can keep the director’s salary if this is authorised by the trust instrument.
Do you need any further clarification or assistance with another matter?
Do you need any further clarification or assistance with another matter?
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