EQUITY AND TRUSTS – ECA 2021
The areas on which your training principal has asked for particular advice are as follows:
Joyce is unsure of how long the trust can actually last and when it will end. What does she need to know?
As matters stand, can Joyce make the land sale mentioned above? Give reasons for your answer, referring to both the Trustee Act 1925 and the Law of Property Act 1925 to support your arguments. If your view is No, explain what steps could be taken in order to enable the transaction to complete.
Given that the Vesting Date passed a couple of years ago:
Can the Trustees actually make the £250,000 distribution in the manner she is proposing?
If your answer to (a) is No, what (if anything) would have to happen instead, and how much would each beneficiary receive?
(c) What are the implications of the income distributions that the Trustees have made since the Vesting Date; and
(d) Depending on your answer to (c) above, what options do the beneficiaries have now?
In view of the query at 3(c) above, and given the £500,000 hole in the trust finances:
How much protection will the exclusion clause give to Max, Roger, and Jenny in their capacity as Trustees?
What are the beneficiaries’ available remedies as regards the missing £500,000 and which ones are likely to offer the best outcome?
Does Joyce need to be worried on her own behalf?
Total word limit: 2,000 (+/- 10%)
