Rule in Saunders v Vautier

Question 1

Who is entitled to direct the trustee to transfer legal title to them?

Answer 1

A sole adult beneficiary of sound mind with an absolute vested interest in the trust property

Question 2

Under what conditions can multiple beneficiaries exercise Saunders v Vautier rights?

Answer 2

If each beneficiary has a distinct interest which can be severed without impacting others

This allows for the transfer of legal title without affecting other beneficiaries.

Question 3

Can beneficiaries of complex fixed trusts exercise Saunders v Vautier rights?

Answer 3

Yes, if all the beneficiaries agree

Beneficiaries must have capacity - therefore must be adults

Question 4

What is required for beneficiaries with contingent interests to exercise their rights?

Answer 4

They must act together with all other persons who share the beneficial interest in the property

This includes cases with discretionary trusts or fiduciary powers that have a gift-over in default of appointments.

Question 5

Is it common for beneficiaries of large and complex trusts to exercise their rights?

Answer 5

Very unlikely

The complexity of such trusts often limits the exercise of rights.

Question 6

What should beneficiaries of a trust not be allowed to do?

Answer 6

Interfere with the administration of a trust while it persists

Beneficiaries can either exercise Saunders v Vautier rights or allow trustees to continue to act in accordance with trust terms.