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Choose your answers from a-d by clicking the radio button next to each choice and then press 'Submit' to get your score.

Question 1

Trustees have a number of different duties to perform. Which of the following is not one of the duties of trustees?

a) To act with reasonable care and skill

b) To make a profit for the trust and themselves

c) To protect the trust funds

d) Loyalty to the beneficiaries

Question 2

If trustees are in breach of trust their duty is:

a) To fully compensate the beneficiaries

b) To pay damages

c) To put the trust estate back to what it would have been had the breach not been committed

d) To compensate the beneficiaries for the loss caused by the breach

Question 3

If the trustees are in breach of trust, when can an individual trustee escape liability and blame the other trustees?

a) If the trustee did not know what the other trustees were doing

b) One of the other trustees removed the trust property

c) If the trustee left all the active running of the trust to the other trustees

d) The other trustees are legally qualified and he/she is not

Question 4

When the beneficiaries sue the trustees for breach of trust or lack of reasonable care and skill, they:

a) Must sue all the trustees

b) Must sue only the trustee(s) who are in breach

c) May sue any trustee(s) that they choose

d) May sue the trustee(s) as directed by the court

Question 5

What must the trustees do to be guilty of the theft of trust property?

a) Understand that they had taken money from a Trust

b) Acted dishonestly by the standards of ordinary and decent people

c) Realised that what they were doing was dishonest

d) Acted dishonestly by the standards of ordinary and decent people and realised that what they were doing was wrong

Question 6

The trustees have a defence to being sued for breach of duty, if the beneficiaries consented to the breach. In what circumstances is that consent valid?

a) If the beneficiaries are adults

b) If the beneficiaries are no longer living with their parents

c) If the consent of the beneficiaries is freely given

d) If the beneficiaries requested the breach of trust

Question 7

Under section 61 of the Trustee Act 1925, the court may relieve a trustee who is in breach of duty from liability if

a) The trustee has acted honestly and reasonably

b) It was the fault of the other trustees

c) The trustee did not realise that they were doing anything wrong

d) The trustee has acted on legal advice

Question 8

The limitation period to sue for breach of trust is

a) Six years

b) Twelve years

c) Three years

d) There is no time limit

Question 9

As seen in the feedback to question 8 above, there is no statutory time limit if a trustee is being sued for fraud or taking the trust property. The lack of a time limit only applies to certain types of trust. Which type?

a) Constructive trusts

b) A constructive trust based on dishonest Assistance

c) A trust which both parties intended to create from the outset

d) A trust based on fraud

Question 10

The doctrine of laches means that:

a) There is no time limit to commence an action

b) The claimant will be permitted to sue unless it is unconscionable

c) The claimant will not be permitted to sue if they delay too long

d) The claimant will not be permitted to sue if they have told the defendant that they would not do so

Oxford University Press, Online Resource Centre, Chapter 13.

Chapter 13

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