3 certainties MCQs Flashcards
A deceased person’s estate contains £50,000 and four paintings by Picasso. Their validly executed will contains the following clauses:
‘1. £50,000 to my trustees to be distributed between such of my children and in such proportions as my trustees may decide.
My trustees must give one of my Picasso paintings to each of my four children. The children may each select their own painting but if they cannot agree, my trustees may make the selection for them.
Which statement best describes the status of the trust in clause 1 and the gifts in clause 2?
Both the trust and gifts are valid.
The trust in clause 2 will fail for uncertainty of beneficial entitlement. The gifts in clause 2 will fail for uncertainty of subject matter.
The trust in clause 1 will fail for uncertainty of objects. The gifts in clause 2 are valid.
The trust in clause 1 will fail for uncertainty of objects. The gifts in clause 2 will fail for uncertainty of subject matter.
The trust in clause 1 is valid. The gifts in clause 2 will fail for uncertainty of subject matter.
Both the trust and gifts are valid.
Clause 1 creates a discretionary trust, of which the objects are certain. Clause 2 creates a gift to each of the settlor’s children and provides a clear mechanism for determining how the property should be distributed. The children have the power to select their own paintings and the trustee also has a default power which may be exercised if there is disagreement.
Shortly before her death, a woman transfers legal title to some company shares to her brother, asking him to hold the shares on trust for “all my friends”.
Advise the woman’s brother
The brother holds the shares on an express trust for the woman’s friends.
The brother holds the shares on a constructive trust for the woman’s estate.
The brother holds the shares on a resulting trust for the woman’s estate.
The brother holds the shares on a discretionary trust for the woman’s friends.
The brother is the full legal owner of the shares
The brother holds the shares on a resulting trust for the woman’s estate.
The trust will fail for uncertainty of objects. As legal title has passed to the intended trustee, he holds it on an automatic resulting trust.
