Professional Documents
Culture Documents
Trusts Exam 2016 (Resit) AB
Trusts Exam 2016 (Resit) AB
Permitted materials
Students are permitted to bring into the examination room the following
specified document: one copy of Blackstone’s Statutes on Property Law (OUP).
UL16/0648
Page 1 of 4
1. Donald held £120,000 in trust for his daughter, June. Donald’s girlfriend,
Chloe, advised him to invest the trust fund as follows:
Eli and Robin are Chloe’s good friends. Robin is an art dealer.
The shares in Apze Co are worth £10,000. Eli had asked Chloe for help
finding a buyer and agreed to share half of any profit from the sale with
her. Eli paid £30,000 of the sale proceeds to Chloe and spent the rest.
Chloe spent her share of the sale proceeds.
June has discovered what has happened and seeks your advice about
any claims she may have against Chloe, Eli, and Robin. She does not
want to sue her father Donald.
Advise June.
2. Boris died recently. His will states that his entire estate is to be held in
trust to be used as follows:
UL16/0648
Page 2 of 4
3. Five years ago, Anna (then age 70) and her daughter Mona (then age
40) opened a joint bank account together. Since then, Anna deposited
a total of £500,000 in the account and Mona contributed nothing to it.
Mona used the account to pay Anna’s bills and withdraw cash for Anna.
Mona also paid £250,000 out of the account to buy a house in her own
name. She did so at Anna’s request for the benefit of Anna’s friend
Shawna, who lives in the house. Anna wanted to buy the house as a gift
for Shawna, but asked Mona to purchase it in her own name to keep it
hidden from Shawna’s many creditors. Mona did not use the account
for any other purpose.
Anna died recently. Mona is now the sole owner of the bank account,
which has a balance of £150,000. According to Anna’s will, Jake is
entitled to her entire estate. Jake claims that Mona holds the bank
account and the house on resulting trust for Anna’s estate.
Advise Mona.
Three months later, Frank met with Amy and Rachel and told them that
his entire estate would be divided between the two of them when he died.
He also told them that he had an illegitimate son named Jason and
asked them if they would give Jason 10% of the estate. They both
agreed to do so.
Frank died recently and his will was probated. His estate consists of real
and personal property. Amy and Rachel seek your advice. Are they
required to share the estate with Jason?
UL16/0648
Page 3 of 4
5. “It is often said that constructive trusts arise regardless of intention, but
that is not true. Most constructive trusts give effect to the intentions of
the parties.”
Discuss.
6. “Trustees should never be liable for breach of trust if they have acted
honestly and reasonably, and they should never be exempt from liability
if they have failed to do so.”
Discuss.
Discuss.
8. “While most trusts for non-charitable purposes are void, there are ways
to get around that prohibition.”
Discuss.
END OF PAPER
UL16/0648
Page 4 of 4