AT2 Flashcards
What happens if a trustee places trusts funds into a bank account with the trustee’s own money?
The beneficiaries can claim a charge over the accounts for the amount of trust funds in it.
What is the basic rule when the trustee places trust funds into a bank account with the trustees own money? And what is the exception?
The trustee is treated as withdrawing their own money first.
Exception - if the trustee withdraws money from the account to purchase an asset and then dissipates the balance, the beneficiaries may claim the asset or a charge over it.
What is a trustee liability for the actions of a co-trustee?
It is liable for the loss caused by their own breach of trust. Trustees must act jointly and must keep the trust property in their joint control
When joint and several liability apply to trustees?
When it has been established that more than one trustee is in breach.
Is a minorlife tenant entitled to income?
No, only when they reach 18.
What is the presumption when two people contributor to the purchase of property but the property is in one person’s name alone?
It is presumed that the person holds the property on trust for themselves and the other person in proportion to their respective contributions.
What is the maximum amount of capital of a fund that can be advanced for trust funds created before 1 Octiber 2014?
The amount advanced must not exceed half of the beneficiary’s vested or presumptive share.
What is the maximum amount of capital of a fund that can be advanced for trust funds created after 1 Octiber 2014?
The full share of the beneficiary
Does the power to advance capital applies where a beneficiary has vested or contingent interest in capital?
Applies to both
What is the test for certainty of objects in a fixed trust?
That it must be possible to draw up a complete list of all beneficiaries.
What is the test for certainty of objects in a discretionary trust?
The postulant test ( a test of whether a person is or is not a member of the class)
What formality is required for a trustee to retire?
A trustee can retire without being replaced if they obtian consent by deed of all their co-trustees.
What is the rule in Strong v Bird?
If the intending settlor dies before the transfer is made and the trustees becomes the settlor’s personal representative, the transfer is complete in law and the gift is enforceable
When communication to the trustee must occur for fully secret trusts?
Either before of after making the will
When communication to the trustee must occur for half secret trusts?
Before the date of the will
