Trusts: Formation and Essentials - Interactive Learning Quizzes

Question 1

Which legal principle governs the certainty requirements for trusts, including both intention and subject matter?

Accepted Answer

Three Certainties Rule

Answer

Rule in Harnett

Answer

Rule in Knight v Knight

Answer

Perpetuities Rule

Question 2

Which formality is NOT typically required for the creation of a trust?

Accepted Answer

Formal registration

Answer

Written documentation

Answer

Transfer of trust property

Answer

Acceptance by the trustee

Question 3

What is the primary purpose of the Perpetuities Rule?

Accepted Answer

Preventing trusts from continuing indefinitely

Answer

Ensuring trusts are established for charitable purposes.

Answer

Protecting the interests of unborn beneficiaries.

Answer

Preventing tax avoidance through trusts

Question 4

Which of the following is NOT a requirement for the valid creation of a trust?

Accepted Answer

Consideration

Answer

Intention

Answer

Subject matter

Answer

Certainty

Question 5

What is the legal principle that requires the settlor of a trust to have a clear and unambiguous intention to establish the trust?

Accepted Answer

Doctrine of intention

Answer

Rule of certainty

Answer

Principle of consideration

Answer

Fiduciary duty

Question 6

Which of the following is NOT a type of certainty required for a valid trust?

Accepted Answer

Certainty of consideration

Answer

Certainty of intention

Answer

Certainty of subject matter

Answer

Certainty of objects

Question 7

What is the legal concept that ensures that the property subject to a trust is clearly defined so that it can be identified?

Accepted Answer

Certainty of subject matter

Answer

Fiduciary duty

Answer

Rule against perpetuities

Answer

Doctrine of lapse

Question 8

Which of the following court cases established the principle that a trust must have a specific, identifiable group of beneficiaries?

Accepted Answer

Morice v. Bishop of Durham

Answer

Knight v. Knight

Answer

Re Gulbenkian's Settlements

Answer

Saunders v. Vautier

Question 9

What is the legal term for the person who transfers property into a trust?

Accepted Answer

Settlor

Answer

Beneficiary

Answer

Trustee

Answer

Protector

Question 10

Which of the following is NOT a characteristic of a charitable trust?

Accepted Answer

Private benefit

Answer

Public benefit

Answer

Perpetuity

Answer

Tax exemption

Question 11

What is the legal principle that limits the duration of a trust to a maximum of 80 years after the death of the settlor?

Accepted Answer

Rule against perpetuities

Answer

Doctrine of lapse

Answer

Fiduciary duty

Answer

Principle of intention

Question 12

Which of the following is NOT a potential consequence of a trust that violates the rule against perpetuities?

Accepted Answer

Enforcement of the trust

Answer

Invalidation of the trust

Answer

Acceleration of the trust

Answer

Modification of the trust

Question 13

What is the legal duty imposed on trustees to act in the best interests of the beneficiaries?

Accepted Answer

Fiduciary duty

Answer

Duty of care

Answer

Duty of loyalty

Answer

Duty of prudence

Question 14

Which of the following is NOT required for the creation of a valid trust?

Accepted Answer

Consideration

Answer

Intention

Answer

Certainty

Answer

Capacity

Question 15

What is the legal principle that requires the subject matter of a trust to be clearly defined and capable of being held in trust?

Accepted Answer

Rule of Certainty

Answer

Rule against Perpetuities

Answer

Rule of Construction

Answer

Rule of Intention

Question 16

Which of the following is a common method of manifesting intention to create a trust?

Accepted Answer

Both (a) and (c)

Answer

Expressly declaring the creation of a trust

Answer

Establishing a pattern of conduct indicative of trust

Answer

Appointing a trustee to hold property on behalf of beneficiaries

Question 17

What is the purpose of the 'Rule against Perpetuities' in relation to trusts?

Accepted Answer

Both (a) and (c)

Answer

To prevent trusts from continuing indefinitely

Answer

To ensure that trusts are wound up within a reasonable timeframe

Answer

To protect beneficiaries from being tied to a trust for an excessive period

Question 18

Which of the following is NOT a type of express trust?

Accepted Answer

Implied trust

Answer

Fixed trust

Answer

Discretionary trust

Answer

Charitable trust

Question 19

Which of the following statements about resulting trusts is true?

Accepted Answer

Both (a) and (c)

Answer

They arise by operation of law when the settlor's intended trust fails.

Answer

They create a presumption that the trustee holds the property on trust for the settlor.

Answer

They can be rebutted by evidence of a contrary intention on the part of the settlor.

Question 20

What is the court's primary role in the administration of trusts?

Accepted Answer

Both (a) and (c)

Answer

To ensure that the trust is administered in accordance with the settlor's intentions.

Answer

To resolve disputes between trustees and beneficiaries.

Answer

To enforce the terms of the trust and protect the rights of the beneficiaries.

Question 21

Which of the following is **not** an essential element for the creation of a valid trust?

Accepted Answer

Capacity

Answer

Intention

Answer

Subject matter

Answer

Certainty

Question 22

What type of intention is required for the creation of a valid trust?

Accepted Answer

Specific intent

Answer

General intent

Answer

Conditional intent

Answer

Presumed intent

Question 23

Which of the following is **not** a recognized type of subject matter for a trust?

Accepted Answer

Legal obligations

Answer

Real property

Answer

Personal property

Answer

Intangible property

Question 24

What is the purpose of the certainty of subject matter requirement for trusts?

Accepted Answer

To ensure that the property to be held in trust is clearly identified

Answer

To prevent the trust from being too vague or uncertain

Answer

To protect the rights of beneficiaries

Answer

To limit the liability of trustees

Question 25

Which of the following statements about the certainty of beneficiaries requirement is true?

Accepted Answer

The class of beneficiaries must be capable of being ascertained

Answer

The beneficiaries must be specifically named

Answer

The identity of the beneficiaries is irrelevant

Answer

The beneficiaries must be alive at the time of the creation of the trust

Question 26

Who is the person that creates a trust?

Accepted Answer

The settlor

Answer

The beneficiary

Answer

The trustee

Answer

The enforcer

Question 27

Which of the following is **not** a formal requirement for the creation of a valid express trust of land in England and Wales?

Accepted Answer

It must be registered with the Land Registry

Answer

It must be in writing

Answer

It must be signed by the settlor

Answer

It must be witnessed by two independent witnesses

Question 28

What is the difference between a complete and an incomplete gift in the context of trusts?

Accepted Answer

A complete gift occurs when the donor has done everything necessary to transfer ownership of the property to the donee, while an incomplete gift occurs when something more needs to be done to complete the transfer.

Answer

A complete gift is irrevocable, while an incomplete gift is revocable.

Answer

A complete gift creates a legal obligation on the donor to transfer the property, while an incomplete gift does not.

Answer

A complete gift is always valid, while an incomplete gift may be void.

Question 29

Which of the following is **not** an essential element for the valid creation of a trust?

Accepted Answer

Consideration

Answer

Intention

Answer

Subject matter

Answer

Certainty

Question 30

The intention to create a trust can be:

Accepted Answer

Express and Implied

Answer

Express

Answer

Implied

Answer

Presumed

Question 31

Which of the following is **not** a requirement for certainty of subject matter?

Accepted Answer

The subject matter must be of sufficient value.

Answer

The subject matter must be specifically identified or capable of being identified.

Answer

The subject matter must be capable of being owned.

Answer

The subject matter must be within the legal capacity of the trustee.

Question 32

A trust that arises by operation of law, without any express or implied intention of the settlor, is known as a:

Accepted Answer

Resulting trust

Answer

Express trust

Answer

Implied trust

Answer

Constructive trust

Question 33

Which of the following is a formality required for the creation of a valid express trust of land in England and Wales?

Accepted Answer

Both Writing and Deed

Answer

Writing

Answer

Deed

Answer

Registration

Question 34

The doctrine of undue influence may render a trust voidable if:

Accepted Answer

Any of the above

Answer

The settlor was under duress or coercion when creating the trust.

Answer

The settlor was not of sound mind when creating the trust.

Answer

The settlor was unduly influenced by a third party.

Question 35

Which of the following is **not** a potential subject matter of a trust?

Accepted Answer

An obligation

Answer

Land

Answer

Shares

Answer

A debt

Question 36

A trust that is created for a charitable purpose is known as a:

Accepted Answer

Public trust

Answer

Private trust

Answer

Express trust

Answer

Resulting trust

Question 37

Which of the following is NOT an essential element for the valid creation of a trust in English law?

Accepted Answer

Capacity of the beneficiary

Answer

Intention to create a trust

Answer

Certainty

Answer

Subject matter

Question 38

In the context of trusts, 'intention' refers to:

Accepted Answer

The settlor's desire to create a trust and transfer property to it

Answer

The beneficiary's expectation of receiving benefits from the trust

Answer

The settlor's hope that the trustee will manage the trust property prudently

Question 39

Which of the following can be the subject matter of a trust?

Accepted Answer

Both tangible and intangible property

Answer

Personal services

Answer

Only tangible property

Answer

Only intangible property

Question 40

When a settlor transfers property to a trust but fails to specify the intended beneficiaries, the trust is considered to be:

Accepted Answer

Void for uncertainty

Answer

Valid for a period of 10 years

Answer

Valid for the settlor's lifetime

Answer

Partially valid

Question 41

Which of the following is a recognized exception to the rule that trusts require certainty of objects?

Accepted Answer

Charitable trusts

Answer

Express trusts

Answer

Resulting trusts

Question 42

In a resulting trust, the property is presumed to be held on trust for:

Accepted Answer

The settlor

Answer

The creditors of the settlor

Answer

The beneficiaries

Answer

The trustee

Question 43

A constructive trust is imposed by the court to:

Accepted Answer

Prevent unjust enrichment

Answer

Punish the trustee for breach of duty

Answer

Reward the beneficiary for good conduct

Answer

Fulfill the intention of the settlor

Question 44

Which of the following is a common formality required for the valid creation of an express trust of land in England and Wales?

Accepted Answer

Writing

Answer

Oral declaration

Answer

Notarization

Answer

Registration