Master Express Trusts: Comprehensive Quizzes for Law Students

Question 1

In the context of express trusts, the primary role of the trustee is to:

Accepted Answer

Manage and administer the trust property responsibly

Answer

Benefit personally from the trust assets

Answer

Establish the trust itself

Answer

Hold the settlor legally accountable for the trust

Question 2

Which method is considered legally valid for creating an express trust of land in England and Wales?

Accepted Answer

Written declaration of trust

Answer

Transferring ownership of the property

Answer

Verbal agreement between parties

Answer

Implied by law without any formal action

Question 3

The legal principle known as the 'rule against perpetuities' in relation to trusts primarily addresses which concern?

Accepted Answer

Enforcing a time limit on the creation and duration of trusts

Answer

Preventing trusts from extending beyond the settlor's lifetime

Answer

Prohibiting the use of trusts to evade inheritance tax

Answer

Restricting the transfer of trusts to third parties

Question 4

A trustee's duty to invest trust assets involves:

Accepted Answer

Creating a diversified portfolio that balances risk and return

Answer

Seeking high-yield investments with potential for substantial returns

Answer

Prioritizing low-risk investments aimed at preserving capital

Answer

Investing solely in assets specifically authorized by the trust document

Question 5

Which of the following is NOT an essential element of a valid express trust?

Accepted Answer

Consideration

Answer

Certainty of intention

Answer

Ascertainment of beneficiaries

Answer

Subject matter

Question 6

Who is the legal owner of the trust property in an express trust?

Accepted Answer

The trustee

Answer

The settlor

Answer

The beneficiary

Answer

The court

Question 7

Which of the following is NOT a way to terminate an express trust?

Accepted Answer

By the unilateral action of the trustee

Answer

By the terms of the trust

Answer

By the consent of all the beneficiaries

Answer

By the order of the court

Question 8

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

Accepted Answer

Consideration

Answer

Certainty of intention

Answer

Certainty of subject matter

Answer

Certainty of trustee

Question 9

True or False: The settlor of an express trust must have legal capacity to create a valid trust.

Accepted Answer

True

Answer

False

Question 10

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

Accepted Answer

Presumed trust

Answer

Private trust

Answer

Charitable trust

Answer

Purpose trust

Question 11

True or False: The trustee of an express trust owes a fiduciary duty to the beneficiaries.

Accepted Answer

True

Answer

False

Question 12

True or False: Beneficiaries have the right to enforce the terms of an express trust against the trustee.

Accepted Answer

True

Answer

False

Question 13

True or False: Express trusts are commonly used for estate planning purposes.

Accepted Answer

True

Answer

False

Question 14

True or False: The law governing express trusts is static and does not adapt to changing societal needs.

Accepted Answer

False

Answer

True

Question 15

Which of the following is NOT an essential element of a valid express trust?

Accepted Answer

Consideration

Answer

Certainty of subject matter

Answer

Certainty of beneficiaries

Answer

Certainty of intention

Question 16

In an express trust, the trustee has a:

Accepted Answer

Legal and equitable interest in the trust property

Answer

Legal interest only

Answer

No interest in the trust property

Answer

Equitable interest only

Question 17

The "Rule against Perpetuities" states that:

Accepted Answer

No interest in land can vest more than 21 years after any life in being at the creation of the interest

Answer

No interest in land can vest more than 100 years after the creation of the interest

Question 18

Which of the following is NOT a ground for the appointment of a new trustee?

Accepted Answer

The trustee is not related to the settlor

Answer

The trustee has a conflict of interest

Answer

The trustee is unable to manage the trust property effectively

Answer

The trustee has committed a breach of trust

Question 19

The Variation of Trusts Act 1958:

Accepted Answer

Allows trustees to vary the terms of a trust with the consent of the beneficiaries

Answer

Requires the court's approval for any variation of a trust

Answer

Prohibits the variation of trusts created before 1958

Question 20

In a discretionary trust, the trustee has the power to:

Accepted Answer

Distribute the trust income and capital to the beneficiaries in their discretion

Answer

Distribute the trust income equally among the beneficiaries

Answer

Distribute the trust capital only to the settlor's descendants

Question 21

Which of the following is NOT an essential element of an express trust?

Accepted Answer

Consideration is NOT an essential element of an express trust.

Answer

Certainty of subject matter

Answer

Certainty of objects

Answer

Certainty of intention

Question 22

Who is responsible for administering and managing the trust property?

Accepted Answer

Trustee is responsible for administering and managing the trust property.

Answer

Protector

Answer

Settlor

Answer

Beneficiary

Question 23

What is the legal principle that requires trustees to act in the best interests of the beneficiaries?

Accepted Answer

Fiduciary duty is the legal principle that requires trustees to act in the best interests of the beneficiaries.

Answer

Due diligence

Answer

Prudent person rule

Answer

Beneficiary rule

Question 24

Which type of express trust is created when the settlor transfers property to a trustee to hold for a specific purpose?

Accepted Answer

Purpose trust is created when the settlor transfers property to a trustee to hold for a specific purpose.

Answer

Discretionary trust

Answer

Charitable trust

Question 25

What is the role of the beneficiary in an express trust?

Accepted Answer

Beneficiaries are entitled to the benefits of the trust property.

Answer

Beneficiaries have the power to appoint and remove trustees.

Answer

Beneficiaries can modify the terms of the trust.

Question 26

Which of the following is NOT a circumstance that can lead to the breach of trust?

Accepted Answer

Acting in accordance with the settlor's wishes is NOT a circumstance that can lead to the breach of trust.

Answer

Failing to disclose conflicts of interest

Answer

Distributing trust assets to unauthorized persons

Answer

Investing trust funds recklessly

Question 27

What is the purpose of a trust protector?

Accepted Answer

To monitor the trustee and ensure compliance with the trust deed is the purpose of a trust protector.

Answer

To appoint and remove trustees

Answer

To distribute trust income to beneficiaries

Question 28

Which of the following is a characteristic of a fixed trust?

Accepted Answer

Beneficiaries have fixed shares in the trust property is a characteristic of a fixed trust.

Answer

Trustees have absolute discretion in distributing trust income.

Answer

Beneficiaries can request the termination of the trust at any time.