Law of Trusts, Constitution problem questionWatch
Wendy wished to dispose of some of her property for the benefit of her family and favourite causes.
She asked the Can Bank to transfer shares in ABC plc, which they held as nominees on her behalf, to the Hang Loose Home for Disabled Trapeze Artists subject to an option to Ann and Ben to repurchase the shares for £500. The Can Bank duly carried out her instructions.
Wendy wrote to Ann and Ben informing them of the option and stating that she would let them know in due course for whose benefit the option was to be held. In her letter she enclosed a cheque for £500 to be used to exercise the option.
Ann and Ben met Wendy, who gave them the deeds to her country property, Bolt Hole, and a share certificate for 10,000 shares in Downpipe plc. She told them that she wished them to hold Bolt Hole and the share certificate for her children, Whiff and Whaff.
Six weeks later, shortly after executing her will, Wendy telephoned Ann and instructed her, together with Ben, to exercise the option ‘for the trust’.
Her will, which was executed before she entered hospital appoints Ann and Ben as executors and states that, as she has provided for her children, her entire estate is to go to Dazzle. Among the assets listed in her will is a savings account to the Can Bank but there is no mention of “Bolt Hole” and “Downpipe”.
Wendy died recently.
Advise Ann and Ben.
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