Results are out! Find what you need...fast. Get quick advice or join the chat
x

Unlock these great extras with your FREE membership

  • One-on-one advice about results day and Clearing
  • Free access to our personal statement wizard
  • Customise TSR to suit how you want to use it

Hard trust question :(

Announcements Posted on
Find your uni forum to get talking to other applicants, existing students and your future course-mates 27-07-2015
Win top prizes in our mega results day giveaway... 24-07-2015
  1. Offline

    ReputationRep:
    Ted was the trustee of the Hopkinson family trust. In April 1999 he exercised
    a power of appointment in favour of Carolyn, one of the beneficiaries,
    appointing her £200,000 in order to allow her to give it to her husband, Fred
    (who is not an object of the trust), to use in his business.
    Any ideas as to what the issue could be? I don't see how giving money to Carolyn could amount to a breach of trust-

    (Ted commits various breaches which are irrelevant for the rest of the question)

    Ted has been removed under a power in
    the trust instrument and replaced by Barbara.
    In January 2008 Barbara exercised a power under the trust to apply money
    for the benefit of one of the beneficiaries, Paul, by tratnsferring £2m on trust
    to trustees under a new settlement for Paul. Barbara now realises that this
    transaction gives rise to a £1m tax liability which could have been avoided
    had the transfer not been made.
    Advise Barbara.
    Here I have some ideas: Barbara could be liable for breach of trust. s.1 Trustee Act 2002. Surcharging (Ultrafame). There is the possibility for an indemnity if Paul had been involved in the transaction (s.63 Trustee Act). But this looks unlikely, Could she not argue that transaction is void? s. 53 1 (c) but it looks more like the Vandervell I scenario. Any ideas why Vandervell should not be applicable here?
  2. Offline

    ReputationRep:
    Eurgh I tried this one and gave up, it was way too hard (the rest of the question too).
  3. Offline

    ReputationRep:
    (Original post by Qoph)
    Any ideas as to what the issue could be? I don't see how giving money to Carolyn could amount to a breach of trust-
    I think it's a question of whether it is fraud on a power - as Fred isn't a beneficiary and the money was only given to Carolyn to enable her to pass it on to Fred.


    Here I have some ideas: Barbara could be liable for breach of trust. s.1 Trustee Act 2002. Surcharging (Ultrafame). There is the possibility for an indemnity if Paul had been involved in the transaction (s.63 Trustee Act). But this looks unlikely, Could she not argue that transaction is void? s. 53 1 (c) but it looks more like the Vandervell I scenario. Any ideas why Vandervell should not be applicable here?
    I think this is on Hastings-Bass - on which of course see now Pitt v Holt, Futter v Futter.
  4. Offline

    ReputationRep:
    2nd one is definitely asking you to consider Pitt v Holt [2011] especially given the distinction between consequence and effect it draws with regard to taxation.

Reply

Submit reply

Register

Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: May 11, 2012
TSR Support Team

We have a brilliant team of more than 60 Support Team members looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Poll
Would you consider Clearing if you missed your offer?
Results and Clearing

Results are coming...

No sweat. Here's all you need to make sure you're ready

new on tsr

What's your life ambition?

Graduating, travelling, owning a business?

x

Think you'll be in clearing or adjustment?

Hear direct from unis that want to talk to you

Get email alerts for university course places that match your subjects and grades. Just let us know what you're studying.

Quick reply
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.