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Merril, in His Will, Left a Fund to Danita, 'To

Question 8

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Merril, in his will, left a fund to Danita, 'to hold it on discretionary trust, and to distribute it among my children in any share as Danita in her absolute discretion thinks fit.' Merril has four adult children, Berlye, Ethel, Cerele and Harry. Merril has now died. Which of the following statements is true in relation to the four children's beneficial entitlement to the fund?


A) Individually the children cannot identify any share in the fund until it is allocated to them by Danita, but collectively they have proprietary rights to the fund.
B) The children have no beneficial entitlements until Danita makes a distribution under the trust.
C) The children are immediately entitled to a one quarter interest in the fund each, as Merril has died and Danita is now the trustee of an active trust.
D) The children collectively own the whole beneficial ownership of the fund, and are also immediately entitled to a one-quarter interest individually, unless and until Danita alters the shares by making a distribution.

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