SQE1 (Solicitors Qualifying Examination) · Wills, trusts and administration of estates

Trusts: creation, administration and breach

15 practice questions, each with the answer and an explanation.

Practise Trusts: creation, administration and breach now

Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.

All 15 questions

  1. Which of the following are the three certainties required for a valid express private trust (Knight v Knight)?
  2. Joel orally declares that he holds his freehold land on trust for his daughter, with nothing in writing. What is the effect?
  3. A settlor wants to create a trust of his shares by transferring them to trustees. He signs the transfer form and hands it with the share certificate to the trustees, but registration is not yet comple…
  4. A man in hospital, believing that he is dying, hands the key to his safe deposit box to a friend and says 'if I die, keep what is inside'. He dies two weeks later of the expected illness. Which doctri…
  5. A testator leaves property in his will 'to Sam absolutely'. Before making the will, he told Sam he must hold the property for the testator's mistress, and Sam agreed. Sam later refuses to hand it over…
  6. A charitable trust requires which of the following under the Charities Act 2011?
  7. Trustees of a family trust have delegated investment decisions to a fund manager under the Trustee Act 2000. A loss follows. What is the trustees' duty in relation to the choice of agent?
  8. Which duty is owed by a trustee under section 1 of the Trustee Act 2000?
  9. A trustee uses her position to buy trust property at a fair price and then resells it for a profit. She acted honestly. Under Keech v Sandford and the rule in the equity of no conflict, what is the po…
  10. A trustee dishonestly misappropriates £100,000 of trust money. A beneficiary wants to follow the money. What may be done?
  11. What is the limitation period for a claim for breach of trust by a beneficiary under section 21(3) of the Limitation Act 1980?
  12. A trust created in 2020 gives income to Ann for life, remainder to Bob. Bob is an adult with a vested interest in remainder. Under section 32 of the Trustee Act 1925, as amended for trusts created aft…
  13. All the adult beneficiaries of a trust, who are of full capacity and together entitled to the whole interest, wish to end it and take the property. Which rule allows this?
  14. A settlor transfers £500,000 into a new discretionary trust during his lifetime. The nil rate band is £325,000 and he has made no prior transfers. What is the inheritance tax position at the point of…
  15. What is the maximum periodic charge for inheritance tax on relevant property in a discretionary trust on each ten-year anniversary?

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