1 - POWERS

Question 1

Re Hayes

Answer 1

Confirms that the donee must consider whether to exercise the power. If the donee of power decides to exercise the power, he must do so:

1. Within the terms of the power
2. in good faith
3. in a reasonable and responsible manner.

Question 2

Turner v Turner

Answer 2

The court will intervene where a fiduciary power is exercised without due consideration.

Question 3

Re Hay’s Settlement

Answer 3

The court indicated that it would compel the donee of a fiduciary power to consider exercising it. However, the courts have been reluctant to suggest that they would compel the donee to exercise the power, as this is inconsistent with its discretionary charater.

In the case of a trust, the trustee is bnound to execute it, if he does not, the court will see to its execution.

Question 4

Mettoy

Answer 4

The court considered that in some circumstances the courts might be willing to stpe in and compel the exercise of the fiusicay power.

Question 5

Breadner

Answer 5

The court will intervene if trustees do not exercise their discretion within a reasonable time.

Question 6

Gartside v IRC

Answer 6

An expectation of receiving property is not a proprietary right in a certain amount of property.m