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Question 1

What is the difference between a bare power and a fiduciary power?

a) With a bare power the appointor can choose any object he/she wants

b) With a bare power the appointor can decide not to appoint

c) With a bare power the appointor cannot choose to appoint to a non object

d) With a fiduciary power the appointor must carefully consider the choice of object

Question 2

The difference between a fiduciary power and a discretionary trust is that:

a) In a fiduciary power the trustees need not consider whether they should exercise the power

b) In a fiduciary power the trustees can choose anyone that they want

c) In a fiduciary power the beneficiaries have no right to be chosen

d) In a fiduciary power the trust property does not belong to the beneficiaries

Question 3

In order to declare a valid trust it is essential to:

a) Use the word 'trust'

b) Put the declaration in writing

c) Use imperative words

d) Impose a binding moral obligation upon the intended trustee

Question 4

Why must a trust have certainty of objects?

a) So that the courts can enforce the trust

b) So that the trustees can list the beneficiaries

c) So that the relatives of the deceased know who can claim against the estate

d) So that the Attorney General can enforce the trust

Question 5

Which of the following descriptions of property would not satisfy the certainty of subject matter test?

a) The bulk of my residuary estate

b) A reasonable income

c) 5 per cent of the shares in my company

d) All of my real and personal property

Question 6

Which of the following description of potential beneficiaries would fail the certainty of objects test?

a) Urgent suppliers

b) Friend or friends nominated by my wife

c) Carol and the kids

d) Relatives or dependents

Question 7

The test for certainty of objects in a fixed trust is:

a) Evidential certainty

b) Ascertainability

c) Administrative workability

d) Exhaustive enumeration

Question 8

The certainty of objects test in McPhail v Doulton [1971] AC 424, states that 'the trust is valid if it can be said with certainty that any given individual is or is not a member of the class'. This test means that the objects of a discretionary trust must be:

a) Evidentially certain

b) Ascertainable

c) Conceptually certain

d) Not so numerous that the trust is unworkable

Question 9

A discretionary trust or fiduciary power can be ruled invalid if there are too many beneficiaries in the class. Which of the following descriptions of a class has been held invalid?

a) The residents of Greater London

b) The inhabitants of the County of West Yorkshire

c) Such person or persons as the trustees think fit

d) Any person or persons, corporation or corporations or charity or charities that the trustees think fit

Question 10

What happens to the 'trust property' if a trust fails for lack of certainty of intention?

a) The property returns to the estate of the settlor or testator on a resulting trust

b) The trustee can keep the property

c) The property is divided equally between the beneficiaries

d) The trustee holds the property on constructive trust

Oxford University Press, Online Resource Centre, Chapter 07.

Chapter 07

Instructions