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Question 1

Under the rule in Saunders v Vautier (1841) Cr & Ph 240, the beneficiaries may:

a) Vary the trust

b) Create a new trust

c) Give directions to the trustees

d) End the trust

Question 2

What is unusual about the decision in Hambro v Duke of Marlborough [1994] Ch 158?

a) A beneficiary's equitable interest was changed

b) A trust created by an Act of Parliament was changed

c) A trust was varied without the consent of an adult beneficiary

d) A protective trust was used

Question 3

An 'arrangement' under the Variation of Trusts Act 1958 allows the court:

a) To make any change to the trust that the court thinks fit

b) To only change the powers and duties of the trustees

c) To change everything except the main purpose of the trust

d) To change only the equitable interests

Question 4

Under section 1 (1) of the Variation of Trusts Act 1958 the court may give its consent to a variation for those who cannot consent for themselves. For which of the following could the court not give its consent?

a) A ten year old child

b) The husband that a single benefi ciary might marry at some time in the future

c) An unborn child

d) A 21 year old life interest

Question 5

In which of the following situations should the court refuse consent to a variation of trust?

a) It is not for the benefit of all the beneficiaries for whom the court must give consent

b) It is not for the benefit of all the living beneficiaries

c) It is contrary to the expressed wishes of the testator or settlor

d) The variation may save the beneficiaries tax

Question 6

Why did Lord Denning not allow the proposed variation of trust in Re Weston [1969] 1 Ch 223?

a) Tax saving is not permitted under variation of trust

b) Jersey is not a suitable place for children to live

c) Relocation of a trust to another jurisdiction is only allowed if the move is genuine and permanent

d) Children should be brought up in England

Question 7

Why was the variation of trust agreed in In Re Remnant's Settlement Trusts [1970] 1 Ch 560?

a) Religious discrimination is not permitted under the Human Rights Act 1998

b) It was for the benefit of the children to avoid family dissension

c) The families agreed

d) It respected the intention of the testator

Question 8

When a variation is authorised in order to save tax, the court must be satisfied that

a) All the beneficiaries will be better off

b) All the beneficiaries for whom the court is consenting will be better off

c) All the beneficiaries for whom the court is consenting are taking a risk that an adult would take

d) The children will be better off

Oxford University Press, Online Resource Centre, Chapter 12.

Chapter 12

Instructions