Question 18

Question text

18 In setting up the McGrath Trust in memory of his deceased wife Glenn McGrath would be described as

a.

A settlor

b.

A fiduciary

c.

A testator

d.

A remainderman

Question 19

Question text

19 The persons who manage the McGrath Trust funds (its trustees)

a.

Have beneficial ownership of money donated to the Trust

b.

Have legal ownership of money donated to the Trust

c.

Have a lien over money donated to the Trust

d.

Are agents of the people who donate to the Trust

Question 20

Question text

20 Jarndyce makes a will in which he leaves his house on trust for his wife Esther to live in during her life (but not sell it); after her death their children, Ricardo and Ada, are to inherit the house. In this situation Esther has

a.

A remainder

b.

A fiduciary interest

c.

A freehold

d.

A life estate

Question 21

Question text

21 In question 20 (above), when Esther dies and title to house is transferred to Ricardo and Ada, the house is described as being

a.

Converted

b.

Settled

c.

Assigned

d.

Vested

Question 22

Question text

22 However, if in question 20 (above) Ricardo and Ada are both killed in a plane crash before Esther dies (and the will contains no other directions) the house becomes subject to

a.

A remainder

b.

A resulting trust

c.

A constructive trust

d.

An implied trust

Question 23

Question text

23 Helen, who is wealthy, dies, leaving in her will $1 million in a trust to build a hostel for retired nurses in financial hardship. When it is discovered that $1 million dollars is not enough to build the hostel Helen intended (which would cost at least $3 million) a court orders that the funds Helen left be invested instead in company shares and the income used to pay for day care of retired nurses who are still living in their own homes. This is an example of

a.

Vesting

b.

A remainder

c.

A resulting trust

d.

Cy-prs

Question 24

Question text

24 Clepta is the treasurer of the local baseball club. Over a period of several years she illegally transfers small sums of money from the clubs bank account to her own account by forging signatures. When her dishonesty is detected a court could declare that she holds the stolen money on behalf of the other club members under

a.

An implied trust

b.

A constructive trust

c.

An express trust

d.

A resulting trust