Deck 4: Trust Formation: Capacity and Formalities

Question 1

A child can be deliberately appointed as a trustee.

Answer 1

False

Question 2

What are the four requirements that a settlor must comply with when they set up an express trust?

Answer 2

No Answer.

Question 3

What are the 'three certainties'?

Answer 3

No Answer.

Question 4

What is the beneficiary principle?

Question 5

Why is it thought to be a bad thing to allow a trust to last forever?

Question 6

Can anyone declare a trust?

Question 7

It is possible for a child to settle personalty on trust?

Question 8

What did the High Court Re Beaney (1978) 1 WLR 770 decide would be taken into consideration when deciding whether a person suffering from mental capacity has the ability to declare a trust?

Question 9

What is the doctrine of laches?

Question 10

How many requirements does a settlor have to adhere to when they declare an express trust?

Question 11

Which two of the following stages are necessary in order to set up an express trust?

A)declaring the express trust
B)stating the express trust
C)constituting the express trust
D)ratifying the express trust

Question 12

The rules against perpetuity exist to ensure that a trust will start and come to an end at some point in the future?

Question 13

The trust is set up provided that the settlor meets formality requirements, the three certainties, the beneficiary principle and the rules against perpetuity.

Question 14

Constitution of a trust means that the property of the trust must be properly transferred to the trustee. It is necessary in order that the ownership of the trust property can be placed with the trustee.

Question 15

Once the trust is set up, the trustee holds the legal ownership in the property for the beneficiary?

Question 16

An express trust can be declared of virtually any property in which the settlor holds a legal (or equitable) interest?

Question 17

Personalty consists only of freehold land?

Question 18

Generally, anyone can be a trustee provided they are 18 years old and of sound mind.

Question 19

What is the maximum number of trustees of land?

A)2
B)3
C)4
D)5
E)6

Question 20

In which case was it considered that a trust involving land could be created orally?