Deck 10: Variation of a Trust and Setting a Trust Aside

Question 1

The common law has always permitted a trust to be varied in certain circumstances.

Answer 1

False

Question 2

When does section 339 of the Insolvency Act 1986 apply?

Answer 2

No Answer.

Question 3

What was important about the decision in Re Butterworth (1881-81) LR 19 Ch D 588?

Answer 3

No Answer.

Question 4

What is a trustee in bankruptcy's primary task?

Question 5

Which section of the Trustee Act 1925 permits trustees or beneficiaries to seek the court's consent to vary a trust by granting the trustees a power either to acquire or dispose of trust property?

Question 6

Re Windeatt's Will Trusts discusses the law of which other jurisdiction?

Question 7

What is a protective trust?

Question 8

Following Chapman v Chapman, the court only had authority to sanction variation of a trust in four strictly limited situations. What were these?

Question 9

The ability of the beneficiaries to vary the trust comes from the decision in…

Question 10

In which case did Lord Evershed MR explain the basic rule that it is not possible to vary a trust?

Question 11

Which of these are limitations to the rule in Saunders v Vautier?

A)The beneficiaries are all adults who are mentally capable ('sui juris').
B)The beneficiaries must all have an absolute, vested interest in the trust property; and.
C)The trustees must agree to end the trust.
D)The beneficiaries have no other desire to end the trust by transferring the legal interest in the trust property to themselves.

Question 12

The Variation of Trusts Act 1958 is much wider in scope than section 57 of the Trustee Act 1925.

Question 13

The Variation of Trusts Act 1958 expressly confirming that the purpose behind its enactment was to remedy the restrictive decision in Chapman v Chapman.

Question 14

The House of Lords in Chapman v Chapman (1954) AC 429 narrowed the discretion of the court to vary a trust.

Question 15

Varying a trust to avoid tax can result in large savings to the beneficiaries.

Question 16

How is a successful action under s 339 Insolvency Act 1986 undertaken?