M XII Flashcards
The solicitors for a buyer and seller of a house have agreed to use the Law Society Formulae for exchanging contracts by telephone. They also agree to use the Standard Conditions of Sale, unamended. Both solicitors wish to exchange contracts using Formula B.
How will the solicitors effect exchange of contracts?
Each solicitor will hold their own client’s contract and will confirm the versions are the same over the telephone. They will then send their client’s signed part to each other, and the buyer’s solicitor will send the agreed deposit to the seller’s solicitor to hold as stakeholder.
The buyer’s solicitor will send the contract signed by the buyer to the seller’s solicitor, along with the deposit. The seller’s solicitor will confirm both contracts are the same over the telephone, insert the exchange and completion dates in both, and send the part signed by the seller to the buyer’s solicitor.
Each solicitor will hold their own client’s contract and will confirm the versions are the same over the telephone. They will then send their client’s signed part to each other, and the buyer’s solicitor will hold the agreed deposit funds as stakeholder.
The buyer’s solicitor will send the contract signed by the buyer to the seller’s solicitor, who will confirm both contracts are the same, insert the exchange and completion dates in both, and send the part signed by the seller to the buyer’s solicitor. The buyer’s solicitor will then hold the agreed deposit as stakeholder.
Each solicitor will send the other their client’s signed contract. The solicitors will confirm the versions are the same over the telephone, and the buyer’s solicitor will then send the deposit funds.
(A) When each solicitor wishes to confirm the contracts under Law Society Formula B for exchanging contracts by telephone, each solicitor holds their own client’s part of the contract, confirms they are the same, and then sends it. The buyer’s solicitor will also send the deposit funds to the seller’s solicitor to hold as stakeholder pursuant to the unamended Standard Conditions of Sale. (B) is incorrect, as it describes a Formula A exchange – the buyer’s solicitor will send the contract signed by the buyer to the seller’s solicitor, along with the deposit. The seller’s solicitor will confirm both contracts are the same over the telephone, insert the exchange date in both, and send the part signed by the seller to the buyer’s solicitor. (C) is incorrect because although it describes a Formula B exchange, as just explained under the unamended Standard Conditions of Sale, the seller’s solicitor will hold the deposit funds as stakeholder. (D) is incorrect because it describes a Formula A exchange, and it also incorrectly provides that the buyer’s solicitor will hold the deposit. (E) is incorrect because no formula for exchange requires both solicitors to send their client’s contract to the other solicitor before confirming they are the same.
A man died intestate, survived by his wife and two daughters. The man’s parents are also alive. The assets in his sole name totalled £400,000, comprising the family home (£350,000), personal belongings (£20,000), and £30,000 in bank accounts.
Which of the following best describes who will inherit the man’s estate?
The man’s wife will inherit the whole estate
.
The man’s wife will inherit half the estate, and the other half will pass to the man’s parents.
The estate will be divided between the man’s wife, his two daughters, and the man’s parents in accordance with the intestacy rules.
The man’s daughters will inherit the whole estate.
The estate will be divided between the man’s wife and two daughters in accordance with the intestacy rules.
(E) The estate will be divided between the man’s wife and two daughters in accordance with the intestacy rules. The rules of intestate succession apply when a person dies without a valid will. Under these rules, when the deceased is survived by a spouse or civil partner and issue, the estate will be divided between the surviving spouse or civil partner and issue in accordance with the intestacy rules. Specifically, the spouse takes personal chattels, £270,000, and half of the residue. The issue take the other half of the residue. Here, therefore, the man’s wife and two daughters will be entitled to share the estate. The man’s parents have no entitlement under the intestacy rules. (A), (B), (C), and (D) are, therefore, incorrect.
A solicitor has completed the purchase of a freehold investment property for a limited company client. The title to the property is registered and the solicitor has dated the legal charge which the limited company signed to secure the mortgage advance required to purchase the property. The solicitor went on holiday the day after completion and left the post-completion work with a colleague. The solicitor has returned to the office one month later to find the following note on the file from their colleague:
‘I submitted the Stamp Duty Land Tax form to Revenue on the day of completion. This is all that I needed to do and I have diarised the date of expiry of the official search with priority. I hope that you enjoyed your holiday!’
Was the colleague correct that they did all that needed to be done?
Yes, the priority period has not expired so the solicitor will still be able to make the application for registration.
No, the colleague allowed the time for registration of the legal charge with Companies House to expire so now a court order is necessary.
No, because the colleague did not send a notice of assignment on completion.
Yes, as the solicitor has a further month within which to complete the registration application.
No, because the colleague was required to wait 14 days before sending the tax to Her Majesty’s Revenue and Customs.
(B) It is necessary to register the legal charge which is referred to in the question within 21 days of completion. This has not been done, so a court order is necessary. (A) is incorrect. It seems from the question that the priority period (30 working days) has not expired (since only a month has gone by), but the certificate of registration of the charge with Companies House is late, as explained previously. (C) is incorrect. A notice of assignment is required on a leasehold transaction, and the question makes it clear that this is a freehold title. (D) is incorrect both because it ignores the problem with the legal charge and because it relies on the time period for submitting an application for first registration of an unregistered title. Our facts make it clear that the title is registered. (E) is incorrect because it is not true; the timescale is any time within 21 days after completion; there is no 14-day waiting period.
A limited company contracted to sell a factory unit with vacant possession and a fixed completion date was agreed. The buyer was not able to obtain their funding and missed the completion date. The seller was somewhat relieved because the tenant who was occupying the factory unit had not yet moved out.
The tenant has assured the seller that they will vacate, although they have not given the seller a date. The seller is keen to proceed and has instructed their solicitor to serve a notice to complete on the defaulting buyer.
Should the solicitor serve the notice to complete as requested?
No, because time is not of the essence in a property conveyance.
No, because the buyer is trying to obtain financing.
Yes, as this is a prerequisite to obtaining an order for specific performance.
No, because the seller is not ready, able, and willing to complete as the tenant is still in situ.
Yes, as the buyer would have been aware of the tenant through pre-contract enquiries.
(D) The seller’s solicitor should not send the notice to complete because the seller is not ready, able, and willing to complete as the tenant is still in situ. A party must be ready, able, and willing to complete before sending a notice to complete. Because it is not clear when the tenant will vacate, the seller cannot be sure that they will secure vacant possession (as required by the contract) by the time the notice to complete is served. Thus the seller is not ready, able, and willing to complete. (A) is incorrect. Whilst it is true that time is not of the essence in a standard conveyance, that is the point of a notice to complete – it makes time of the essence and requires the party served to complete within 10 working days. (B) is incorrect because it is irrelevant. Serving a notice to complete would give the seller remedy options that aren’t otherwise available (such as rescinding the contract, should the buyer be unable to obtain financing). (C) is incorrect both because the seller is not ready, able, and willing to complete and because, even if they were, an order for specific performance would not be a very good remedy as the buyer does not appear to have the funds to purchase the factory. (E) is incorrect because it is irrelevant; under the contract, the seller is required to deliver vacant possession and since the seller does not know whether they can, they are not ready, able, and willing to complete
A firm has incurred the following costs on behalf of a client: (1) travel expenses whilst working on the client’s matter, (2) court fees, (3) stamp duty land tax, (4) estate agent’s fees, and (5) surveyor’s fees.
Which of the following most correctly describes which payments can be treated by the firm as disbursements for the purposes of VAT?
The estate agent’s fees and the surveyor’s fees.
The land registry fees and the stamp duty tax.
The travel expenses and the stamp duty fees.
Travel expenses.
All of the expenses.
(A) The estate agent’s fees and the surveyor’s fees are the expenses most likely to come within the HMRC guidelines of what constitutes a disbursement, as they will have been paid on the client’s behalf as the client’s agent, the client has received the benefit of the services, and the client will have authorised the payment. (B) is incorrect as these fees are exempt from VAT. (C) and (D) are incorrect as travel expenses cannot be treated as disbursements – they are treated as general overheads.
A man instructed a solicitor to assist the man in purchasing a home. Title to the home had not yet been registered with Her Majesty’s Land Registry, but the sale has just completed and the solicitor is preparing to apply for a first registration of title. The solicitor has determined that no Stamp Duty Land Tax is due.
Must the solicitor submit a Stamp Duty Land Tax return to Her Majesty’s Revenue and Customs (‘HMRC’) with respect to the transaction?
Yes, within 14 days of completion.
Yes, within 14 days of first registration.
No, as the solicitor determined that no tax is due.
Yes, within 30 days of completion.
Yes, within 30 days of first registration.
(A) A Stamp Duty Land Tax return must be submitted to HMRC within 14 days of completion of the purchase of a property, even if no tax is due. Penalties and interest are payable if the return is not timely filed or if any Stamp Duty Land Tax is owed but not paid within this 14-day period. The 14-day period applies whether title to the property is registered or unregistered. (B) is incorrect as the period is measured from the date of completion and not from the date of registration. (C) is incorrect as it does not matter that no tax is due – the return must still be filed. (D) and (E) are both incorrect as the period is 14 days from completion.
A woman and a man have agreed that the man will buy the woman’s home. They each have instructed solicitors to act for them in the transaction. The solicitors have agreed to use the Law Society’s Conveyancing Protocol and the Code for Completion by Post. Contracts have already been exchanged, which included the Standard Conditions of Sale unamended.
Under the Code for Completion by Post, when should the seller’s solicitor confirm completion?
The solicitor must confirm completion by 2 PM on the day of completion by phone, fax, or email and must send written confirmation by first class post or document exchange within three working days after completion.
The solicitor must confirm completion as soon as possible by phone, fax, or email and by written confirmation sent by first class post or document exchange no later than the end of the working day following completion.
No later than the end of the working day following completion, the solicitor must confirm completion both by phone, fax, or email and by written confirmation sent by first class post or document exchange.
The solicitor must confirm completion as soon as possible by phone, fax, or email and by written confirmation sent by first class post or document exchange no later than three working days following completion.
The solicitor must confirm completion as soon as possible by phone, fax, or email and by written confirmation sent by first class post or document exchange no later than three working days following completion.
(B) Under the Code for Completion by Post, the solicitor must confirm completion as soon as possible by phone, fax, or email and by written confirmation sent by first class post or document exchange no later than the end of the working day following completion. Therefore, all the other choices are incorrect. It should be noted that the 2 PM in (A) is a reference to the time by which completion must occur on the completion date unless the parties have agreed otherwise.
An executor has been administering the estate of her aunt for several months. Her aunt was wealthy and left a large estate, which has been very time-consuming and complicated for the executor to manage. She would like to be remunerated for her time and effort. The will is silent regarding executor remuneration.
Can the executor charge the estate for her services?
Yes, because the estate was large and complicated.
Yes, if remuneration is authorised by the court.
Yes, if the executor is also a solicitor.
No, because a personal representative may not charge for their services.
No, because the will does not authorise remuneration.
(B) The executor can charge the estate for her services if it is authorised by the court. PRs are not entitled to charge for services unless it is authorised in some way-either by the court, the will, or the beneficiaries. The court can authorise remuneration for PRs for past, present, or future services. (D) is therefore incorrect. (A) is incorrect because, although the estate’s size and complexity may persuade the beneficiaries or court to allow remuneration, a large and complex estate does not automatically entitle the PR to receive payment. (C) is incorrect. The PR does not also have to be a solicitor to charge for services. (E) is incorrect. If the will does not expressly authorise remuneration, a PR can still receive payment from the beneficiaries or by court authorisation.
A solicitor is acting as executor of an estate of a client who died three months ago. The solicitor has obtained the grant of probate. The solicitor would like to buy a house from the estate for himself. The solicitor offers the probate valuation for the house, and the residuary beneficiary agrees in writing.
Should the solicitor proceed with the necessary documentation to transfer the house into his own name?
Yes, because a solicitor can act where there is an own interest conflict if they have received written consent from the client.
Yes, because a solicitor can act where there is an own interest conflict if they are satisfied it is in the client’s best interests.
Yes, because a solicitor can act where there is an own interest conflict if the solicitor and the client have a substantially common interest.
No, because a solicitor cannot act if there is an own interest conflict unless the solicitor and the client are competing for the same objective.
No, because a solicitor cannot act if there is an own interest conflict or a significant risk of an own interest conflict.
(E) There is an absolute bar to the solicitor acting where there is an own interest conflict or a significant risk of an own interest conflict. Here the solicitor is, in effect, both the seller (as executor) and buyer. (A) is incorrect because of the absolute bar to acting, and the beneficiary is not a client anyway. (B) is incorrect because of the absolute bar. (C) and (D) are incorrect because neither of the exceptions for conflicts between clients apply to a solicitor’s own interest conflicts.
A first-time buyer has exchanged contracts on the purchase of a leasehold flat which they will use as their main home. The buyer has received the completion statement from their solicitor and notes that there is an additional sum showing on the completion statement for a service charge. The first-time buyer is not sure what this is and telephones their solicitor.
How should the solicitor respond?
That the figure appearing on the statement is an allocation for service charges paid in advance by the seller.
That the figure appearing on the statement is an apportionment for service charges paid in advance by the seller.
That the figure appearing on the statement is an error and will be removed because it is not applicable in a leasehold transaction.
That the figure appearing on the statement is payable by the landlord and is included for the buyer’s reference only.
That the figure appearing on the statement is an amount that covers fees associated with the registration of the transaction.
B) In a leasehold transaction, tenants may be responsible under the terms of their leases for paying a defined share of a service charge in addition to their rent. While a management company is responsible for carrying out repairs and maintenance to the building, the costs of this are passed on to tenants via the service charge. If the seller has paid service charges in advance, they will expect reimbursement of the advance payment from the buyer on completion. The adjustment is known as an apportionment. (A) is incorrect because the relevant term here is ‘apportionment’. (C) is incorrect because the reverse is true – service charges are applicable only in leasehold transactions. (D) is incorrect because service charges are payable by tenants, not landlords. (E) is incorrect because the service charge is not related to registration fees. As explained above, the service charge is a means of apportioning the costs of maintaining a building amongst tenants.
A woman made a will seven years ago. At that time, she owned a Toyota car. In her will, she left “my car” to her nephew and the residue of her estate to her daughter.
In the days after the woman’s death, her executor discovered that the woman sold her Toyota car three years ago and purchased a new Mercedes car.
Will the woman’s nephew inherit the Mercedes under the will?
Yes, as to assets, the will is treated as speaking at the time of the testator’s death.
No, the gift of the car will lapse, and the nephew will receive nothing.
No, as the nephew is merely entitled to require the executor to buy him a Toyota similar to what the woman owned when she wrote the will.
No, the gift of “my car” will adeem, and the nephew will receive nothing.
No, as the nephew is only entitled to receive a sum of money equal to the value of the Toyota.
(D) The gift of the car adeems, and the nephew will receive nothing. If a will makes a gift of specific property and that property is not in the testator’s estate when the testator dies, the gift adeems-that is, it fails. The general rule is that the will speaks at the date of death for gifts. However, if the will refers to “my” property like “my car”, it is presumed that the testator had a contrary intention to the general rule and intended the beneficiary to receive the car the testator owned when they wrote the will. Here, the woman left “my car” to her nephew. She owned a Toyota when she wrote the will but owned a Mercedes at her death. It is presumed that she intended the nephew to receive the Toyota. Because the Toyota was not in the woman’s estate when she died, the gift adeems. The nephew will receive nothing. (A) is therefore incorrect. (B) is incorrect because lapse occurs when a beneficiary has predeceased the testator. That is not the situation here. (C) is incorrect because the nephew is not entitled to ask the executor to buy him a Toyota. (E) is incorrect because the nephew will not receive a sum of money equal to the value of the Toyota.
A client is purchasing a factory unit from a limited company. The solicitor acting for the client notes that there is a charge on the charges register and has prepared a completion statement for their client who is a cash buyer.
What pre-completion searches will the buyer’s solicitor carry out?
A full land charges search and a company search.
A company search and a bankruptcy search.
A company search and an official search with priority.
An official search with priority and a bankruptcy search.
A full land charges search and a bankruptcy search.
(C) The solicitor must carry out a company search and an official search with priority. The facts indicate that the buyer is purchasing from a limited company; thus, a company search will be required. The facts also indicate that there is a charges register, which denotes that the title is registered; thus, an official search with priority is required. (A) is incorrect. A full land charges search is relevant when the title is unregistered. (B) is incorrect. The facts indicate that the client is a cash buyer. This means the buyer is not getting a mortgage; thus, a bankruptcy search is not required. (D) and (E) are incorrect for the same reason. (E) also is incorrect as a full land charges search is for unregistered land.
A woman died recently. Two years before her death, she made a potentially exempt transfer in the form of a cash gift to her daughter. A large sum of tax is now payable on this gift, but the daughter has spent all the money and has no funds to pay the tax. The woman’s executors were unaware of this cash gift but have now been contacted by Her Majesty’s Revenue and Customs (HMRC), which is seeking to recover this sum from them.
Which of the following should the personal representatives have done to best protect themselves from this liability?
The personal representatives should have made full enquiries to discover details of lifetime gifts and obtained a certificate of discharge from HMRC.
The personal representatives should have placed appropriate advertisements and waited two months from the date of the advertisements before distributing the estate.
The personal representatives should have obtained a Benjamin Order.
The personal representatives should have asked all family members about any lifetime gifts made by the woman.
The personal representatives should have waited six months from the issue of the grant of probate before distributing the estate.
personal representatives could have protected themselves from this liability by making full enquiries to discover details of lifetime gifts and obtaining a certificate of discharge from HMRC. Liability for failed potentially exempt transfers by the deceased can arise if the inheritance tax due is still unpaid after 12 months. However, HMRC will not pursue the personal representatives for this liability if the personal representatives have made the fullest enquiries and obtained a certificate of discharge from HMRC. (B) is incorrect because placing appropriate advertisements protects against claims from unknown beneficiaries and creditors, which is not the situation here. (C) is incorrect because Benjamin Orders protect against claims from known but missing beneficiaries and creditors. (D) is incorrect. Making enquiries of the family alone is insufficient. A certificate of discharge is also required. (E) is incorrect. Waiting six months would not have assisted in relation to this matter either.
An executor is dealing with the estate of a woman who died recently with a large estate. The estate is subject to an initial inheritance tax payment of £180,000. The estate comprises a house worth £400,000, £60,000 in various bank accounts (all of which participate in the Her Majesty’s Revenue and Customs direct payment scheme), £100,000 payable to the estate under a life insurance policy, £10,000 of quoted shares, and some furniture worth £5,000. A bank loan is available to fund the inheritance tax that cannot be funded from elsewhere.
Which of the following assets will need to be used to fund the initial payment of inheritance tax?
The £60,000 in bank accounts, £100,000 life insurance proceeds, the shares, the furniture, and a £5,000 bank loan.
£100,000 life assurance proceeds, the furniture, and a £75,000 bank loan.
The house only.
£60,000 in bank accounts, the shares, and a £110,000 bank loan.
£60,000 in bank accounts, the shares, the furniture, and a £105,000 bank loan.
A) The bank accounts, life insurance proceeds, shares, furniture, and bank loan will need to be used to pay the inheritance tax (‘IHT’). The initial payment of IHT must be made before the PRs can apply for the grant. Consequently, the house will be unavailable to fund the IHT, as real estate can be sold only with a grant as evidence of the executor’s authority to sell the property. However, the £60,000 in bank accounts can be paid directly to HMRC before the grant is obtained to fund the IHT. The quoted shares and furniture can also be sold to raise funds before the grant is obtained. As the life insurance proceeds are payable to the estate, the insurance company may pay this sum directly to HMRC. This leaves an outstanding balance of £5,000, which can be funded via a bank loan. (B), (C), (D), and (E) are therefore incorrect.
The solicitors acting for the landlord and tenant of office premises have spent many weeks trying to negotiate the terms of a new lease following the service by the tenant of a valid section 26 notice under the Landlord and Tenant Act 1954 (Part II). It is clear that the parties will not be able to reach agreement.
How will the absence of agreement between the parties be resolved?
The landlord will impose the terms of a new lease because they own the premises.
The tenant will take a new lease of the premises, which will be on the same terms as the old lease.
The court will set the terms of the new lease.
The tenant will impose the terms of a new lease because it is protected under the 1954 Act.
The lease will be surrendered, and the tenant will be required to vacate because the parties cannot agree.
(C) If the parties cannot agree on the terms of a new lease following service of a section 26 notice, the court can set the terms of the new lease, although in practice this is rare. Therefore, the remaining answers are incorrect.
In her will a woman left all her estate to trustees to hold on trust for her daughter for life and on her death to her grandchildren in equal shares. The daughter has requested the trustees to use some of the fund to purchase a house in France to be used as a holiday home for the family and to be rented commercially when not in use.
If the trustees refuse the request, what is the most likely reason?
The daughter has no interest in the capital of the fund.
The purchase of the house would not benefit the grandchildren.
The use of a house as a residence is not an investment.
The purchase would be an unauthorised investment.
The trustees must act impartially between the beneficiaries
(D) The trustees would refuse the request because the purchase would be an unauthorised investment. Trustees must invest in authorised investments. They have power to purchase land in the UK as an investment, as a residence for a beneficiary, or for any other reason, but they have no power to buy land outside the UK. (A) is incorrect because the request relates to a trustee investment, not to the exercise of the trustees’ power to advance capital. (B) and (E) are incorrect because, although the trustees’ duty is to act impartially between the beneficiaries, there is no reason why the purchase of land as a residence should not benefit the grandchildren by bringing capital growth. (C) is incorrect because trustees have express power to purchase land as an investment, as a residence for the beneficiaries, or for any other reason
Last year a man transferred shares into the name of his adult grandson. No reason was given for the transfer. The man now claims that he made the transfer because he feared that he would be liable for a large legal claim and he wanted to keep the shares out of reach of his potential creditors. The claim has not materialised, and he wishes to claim the shares back. His grandson refuses to hand the shares over.
Which of the following statements best describes the man’s position?
The court will not allow the man to reclaim the shares because it will not hear evidence of his illegal purpose.
The court will not allow the man to reclaim the shares because there was no declaration of trust.
The court will allow the man to reclaim the shares because the illegal purpose was not carried out.
The court will not allow the man to reclaim the shares because it is presumed that he intended to make a gift.
It will be for the court to decide whether the man may reclaim the shares depending on whether it is in the public interest.
(E) If a property transfer was made as part of an illegal or fraudulent transaction, the court must decide whether it is in the public interest to allow the claim. The court would take into account all relevant factors, including the underlying purpose of the relevant law and the respective conduct of the parties. In these circumstances, the court would likely consider whether creditors have in fact been deceived, whether the grandson was aware of the scheme, and the effect on either party of allowing the man’s claim. (A) is incorrect because, as noted above, the court will decide based on the relevant factors. The claimant does not need to plead the illegal purpose. (B) is incorrect because if the court decides to allow the claim because it is in the public interest, no declaration is required. (C) is not the best answer because while the court will consider whether the illegal purpose was carried out, that factor by itself is not definitive, as discussed above. (D) is incorrect because, as discussed above, the court will decide based on all of the relevant factors.
A man died intestate, survived by his civil partner and son. The assets in his sole name totalled £500,000, comprising the family home (£350,000), personal belongings (£50,000), and £100,000 in bank accounts.
Which of the following best describes how the man’s estate will be distributed?
The man’s civil partner will be entitled to a statutory legacy of £250,000 only.’
The man’s civil partner will have no entitlement to the man’s estate, and the whole estate will pass to the man’s son.
The man’s estate will be split so that the civil partner and son receive half each.
The man’s civil partner will be entitled to the man’s personal belongings, a statutory legacy of £270,000, and half of the remaining assets.
he man’s son will be entitled to receive the man’s personal belongings only.
(D) The man’s civil partner will be entitled to the man’s personal belongings, a statutory legacy of £270,000, and half of the remaining assets. The rules of intestate succession apply when a person dies without a will. Under these rules, when the deceased is survived by a spouse or civil partner and issue, the spouse or civil partner will receive personal chattels, £270,000, and one-half of the residue. The deceased’s issue will take the other half of the residue. Here, therefore, the man’s civil partner and son will be entitled to share the estate. The civil partner will receive the personal belongings, a statutory legacy of £270,000, and half of the remaining assets only. The other half of the remaining assets will pass to the man’s son. (A), (B), (C), and (E) are, therefore, incorrect.
A man purchases 12 crates of wine, all of the same vintage. He tells his brother: “Six of these crates of wine are for you. I will keep them for you in my cellar”. One week later the man dies. In his will he appoints his solicitor to be his executor and leaves all his estate to charity. All the wine remains in his cellar.
Can the brother claim six crates of the wine?
No, because there was no clear intention to declare a trust.
Yes, because the man was holding the wine on trust for his brother.
No, because there was no written evidence of the man’s intention to create a trust.
Yes, because the man’s intention to give the wine to his brother continued until his death.
No, because it is not clear which of the crates are held for the brother.
(E) The brother cannot claim six crates of the wine because it is not clear which of the crates are held for him. Where an individual wishes to create a trust of personalty with himself as trustee, there must be certainty of intention to be legally bound, of subject matter (the trust property), and objects (the beneficiary). There are no formal requirements for a declaration of trust of personalty. Here, the man’s words suggest that he intends to be legally bound, and the beneficiary is clearly his brother. However, where the trust property is tangible property it must be clearly differentiated from other property of the same kind. Here, the man has not set aside the six crates of wine intended for the brother, so the trust fails for lack of certainty of subject matter. (A) is incorrect because the man’s words suggest an intention to bind himself, even though the word ‘trust’ has not been used. (B) is incorrect because the trust fails for lack of certainty of subject matter. (C) is incorrect because the requirement for a declaration of trust to be evidenced in signed writing only applies to trusts of land. (D) is incorrect because the requirement for intention to continue until death applies only where an attempted gift has failed but the intended donee becomes the donor’s personal representative, which is not relevant on these facts.
A woman died 11 months ago domiciled in England and Wales. She left her whole estate to charity in her will. A grant of representation to her estate was issued seven months ago. The woman’s husband is considering whether to bring a claim against her estate under the Inheritance (Provision for Family and Dependants) Act 1975 (‘the Act’). There are no circumstances in which a court would give leave for a late application to be made under the Act.
Is the husband able to bring a claim under the Act?
No, because the woman died more than six months ago.
No, because the grant of representation was issued more than six months ago.
Yes, because the grant of representation was issued less than one year ago.
Yes, because the woman died less than one year ago.
Yes, because the grant of representation was issued within six months of the woman’s death.
(B) The husband cannot bring a claim under the Act because the grant of representation was issued more than six months ago. There is a time limit for bringing a claim under the Inheritance (Provision for Family and Dependants) Act 1975. An application must be made within six months of the issue of the grant of representation to the personal representatives. Here, the grant of representation was issued seven months ago, so the time limit for a claim has expired. (A), (C), (D), and (E) are incorrect because they do not accurately state the relevant time limit.
