Trusts v Powers v Gifts

Question 1

Definition of a trust

Answer 1

Duty to hold property for the benefit of others

Question 2

Definition of a power

Answer 2

Power of a non-owner to dispose of property

Question 3

Definition of a gift

Answer 3

A voluntary, gratuitous transfer of property

Question 4

Nature of trusts

Answer 4

Mandatory

Question 5

Nature of powers

Answer 5

discretionary

Question 6

Words which creates trusts

Answer 6

shall, must

Question 7

Words which create powers

Answer 7

May, if

Question 8

Rights of beneficiaries of a trust

Answer 8

Equitable right to the trust property. Right to bring the trust to an end: saunders v Vaultier

Question 9

Rights of objects of a power

Answer 9

None for non-fiduciary
To be considered for fiduciary: Vestry v IRC
No equitable right to the property

Question 10

Rights of the recipient of a gift

Answer 10

None - equity does not assist a volunteer

Question 11

Test for certainty of objects for fixed trust

Answer 11

List test: Broadway Cottages

Question 12

Test for certainty of objects for a discretionary trust

Answer 12

Is/is not test: McPhail v Doulton

Question 13

Test for certainty of objects for a power

Answer 13

Is/is not test: Re Gulbenkian

Question 14

Duties of a donee of a power

Answer 14

1. Consider whether to exercise discretion
2. Not to go beyond what is authorised
3. Survey the range of potential Bs and weigh up their merits: Re Hay’s