Trust

Answer these questions
1. Regarding the modern form of trust, is it correct to say that “the limitations [i.e. the gifts over] in default of appointment may be looked upon as embodying the primary intention of the donor of the power” (Lord Parker of Waddington in Vatcher v Paull [1915] AC 372 at 379)?
2. What happens when an agent exceeds the authority granted by the principal when exercising a dispositive power over the principal’s assets? What happens when a trustee exercises a dispositive power in breach of trust? How and why might these lead to different results?
3. What are general, special, and intermediate (or hybrid) powers of appointment and how are they different from each other? How and to what extent is a general power of appointment different from ownership for one’s own benefit? Could a general power of appointment be held in a fiduciary capacity? Was the power in Re Manisty’s Settlement Trusts valid? What did Templeman J think that trustees should do if they have a power to add members to a class of objects? In what circumstances did he think that the court should intervene to control the exercise of such a power?
4. What potential difficulties arise when a hybrid or intermediate power of appointment is held in a fiduciary capacity? In Re Hay’s Settlement Trusts, Megarry J said that the fiduciary would have to “make such a survey of the range of objects or possible beneficiaries as will enable him to carry out his fiduciary duty.” How would a trustee holding an intermediate power of appointment perform that duty? Why did Megarry J think that an “intermediate trust” would be void? Do you agree with Megarry’s reasons for suggesting (obiter) that an intermediate or hybrid trust would be administratively unworkable?
5. What is a letter of wishes? What functions can it perform? How far is it legally necessary, or desirable, for trustees to take it into account? Does it make sense to say that a letter of wishes is “morally” binding? After a trust is up and running, can the settlor send new letters of wishes to the trustees?
6. What was the issue in Chen v Ling? What was the issue in Breakspear? What do these cases tell us about letters of wishes?
7. What right does a beneficiary have to see a letter of wishes? What information are the beneficiaries entitled to receive? Can the settlor cut this down? What about disclosure in civil procedure? Does a trustee have a duty to inform persons that they are beneficiaries? What about testamentary (i.e. will) trusts? Which beneficiaries are entitled to trust information? Does it matter if they are minors or discretionary objects?