SQE1 Equity & Trusts

Question 1

Which three certainties must be satisfied to create a valid express trust, as established in Knight v Knight (1840)?

Accepted Answer

Certainty of intention, subject matter, and objects

Answer

Certainty of intention, consideration, and capacity

Answer

Certainty of parties, subject matter, and duration

Answer

Certainty of objects, consideration, and writing

Question 2

In determining certainty of intention, which statement best reflects the current legal position after Re Adams and the Kensington Vestry?

Accepted Answer

Courts examine the substance of the language to determine whether a mandatory obligation was intended

Answer

The word 'trust' must appear explicitly in the document

Answer

Precatory words such as 'I hope' or 'I wish' are sufficient to create a binding trust

Answer

A trust can only be validly created by deed

Question 3

In Re Golay's Will Trusts, why was a direction to pay a beneficiary 'a reasonable income' held to satisfy certainty of subject matter?

Accepted Answer

A court could objectively assess what constituted a reasonable income

Answer

The testator had provided a definition of 'reasonable' in the will

Answer

The beneficiary had agreed to the amount in advance

Answer

The Trustee Act 2000 provides a default definition of reasonable income

Question 4

What is the consequence where a trust fails for conceptual uncertainty in its objects?

Accepted Answer

The trust is void

Answer

The court applies a 'wait and see' rule

Answer

The trustees have a discretion to distribute as they see fit

Answer

The court severs the uncertain part and upholds the remainder

Question 5

For discretionary trusts, which test for certainty of objects was adopted by the House of Lords in McPhail v Doulton [1971]?

Accepted Answer

The is or is not test

Answer

The complete list test

Answer

The substantial number test

Answer

The majority test

Question 6

Under the rule in Strong v Bird, when may an imperfect inter vivos gift be perfected on the donor's death?

Accepted Answer

Where the donor had a continuing intention to make the gift and the donee is appointed executor or administrator of the donor's estate

Answer

Where the donor made a written promise to give the property and that promise was witnessed

Answer

Where the donee gave consideration in reliance on the promised gift

Answer

Where the gift is registered at the Land Registry before the donor's death

Question 7

The beneficiary principle requires a trust to have ascertainable human beneficiaries. Which of the following is a recognised anomalous exception to this principle?

Accepted Answer

Trusts for the maintenance of specific private graves

Answer

Trusts for the promotion of political purposes

Answer

Trusts for the general benefit of unincorporated associations

Answer

Trusts for abstract purposes such as world peace