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STEP Diploma practice questions

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Question 1Trusts: creation, types and administration

Under the three certainties required for a valid express trust, which certainty concerns the settlor's intention to impose a binding obligation rather than merely express a hope or moral wish?

  1. Certainty of subject matter
  2. Certainty of duration
  3. Certainty of objects
  4. Certainty of intention Correct answer.

Explanation

Certainty of intention requires that the settlor genuinely intended to create a trust and to impose an enforceable obligation on the trustee. Precatory words expressing a wish or confidence fall short of this requirement, so the arrangement may instead create a moral obligation or a gift.

Question 2Trusts: creation, types and administration

A settlor transfers £200,000 to a trustee 'to hold on trust for my children in such shares as my trustee shall in his absolute discretion decide'. Which certainty is most clearly engaged by the words 'my children'?

  1. Certainty of intention
  2. Certainty of subject matter
  3. Certainty of formality
  4. Certainty of objects Correct answer.

Explanation

The phrase 'my children' identifies the class of beneficiaries, which is the certainty of objects. A trust is valid if it can be said with certainty whether any given individual falls within the class.

Question 3Trusts: creation, types and administration

Which of the following best describes a fixed trust?

  1. The beneficiaries and their shares are predetermined by the settlor Correct answer.
  2. The trustee holds the property for a charitable purpose chosen by the court
  3. The beneficiary has a contingent interest subject to a condition precedent
  4. The trustee decides which beneficiaries should benefit and in what amounts

Explanation

In a fixed trust the settlor has fixed both the identity of the beneficiaries and the quantum of their interests. The trustee has no discretion over who benefits or how much each receives.

Question 4Trusts: creation, types and administration

In a discretionary trust, which statement correctly identifies the nature of a beneficiary's interest before the trustee exercises discretion?

  1. A vested beneficial interest in a fixed share of the fund
  2. A mere expectancy or hope that the trustee will exercise discretion in their favour Correct answer.
  3. A proprietary interest in specific trust assets
  4. A contractual right enforceable against the settlor

Explanation

Before the trustee exercises discretion, a discretionary beneficiary has no proprietary interest in the fund; they have only a hope or expectancy of benefiting. Once a distribution is made, the recipient acquires a vested interest in the amount received.

Question 5Trusts: creation, types and administration

Which of the following trusts arises by operation of law rather than by the express intention of a settlor?

  1. Resulting trust Correct answer.
  2. Charitable trust created by deed
  3. Express fixed trust
  4. Express discretionary trust

Explanation

Resulting trusts arise by operation of law, typically where a beneficial interest is not fully disposed of and reverts to the settlor. Express trusts and charitable trusts created by deed depend on the settlor's intention.

Question 6Trusts: creation, types and administration

A purchaser buys land and directs the seller to transfer it to a third party. In the absence of any evidence of intention to benefit that third party, what presumption arises?

  1. A charitable trust over the land
  2. A constructive trust in favour of the seller
  3. An express trust in favour of the third party
  4. A resulting trust in favour of the purchaser Correct answer.

Explanation

Where A purchases property and directs the transfer to B, equity presumes a resulting trust in favour of A unless there is evidence of an intention to make a gift. The presumption reflects the maxim that equity presumes a bargain rather than a gift.

Question 7Trusts: creation, types and administration

A testator leaves property 'to my sister on trust for such of my nephews and nieces as she shall select'. What type of trust is this?

  1. Discretionary trust Correct answer.
  2. Fixed trust
  3. Resulting trust
  4. Constructive trust

Explanation

The trustee is empowered to select which members of a class will benefit, which is the hallmark of a discretionary trust. Because selection is required, no beneficiary has a fixed vested share.

Question 8Trusts: creation, types and administration

Which of the following is the essential distinction between a trust and a bailment?

  1. A trustee must always be paid, whereas a bailee acts gratuitously
  2. A trust can only arise over land, whereas a bailment concerns only chattels
  3. A trustee takes legal title to the property, whereas a bailee obtains only possession Correct answer.
  4. A bailee holds legal title, whereas a trustee holds only possession

Explanation

A trustee acquires legal ownership of the trust property and holds it for the beneficiaries, whereas a bailee receives only possession and must return the goods. This difference in title explains the different remedies available.

Question 9Trusts: creation, types and administration

Which of the following is a fiduciary duty owed by a trustee?

  1. A duty to maximise the trustee's personal profit from trust assets
  2. A duty to avoid unauthorised conflicts between personal interest and duty Correct answer.
  3. A duty to disclose trust documents to any member of the public
  4. A duty to delegate all investment decisions without review

Explanation

The no-conflict rule prohibits a trustee from placing themselves in a position where personal interest conflicts with the trust. This is a core fiduciary obligation, alongside the no-profit rule.

Question 10Trusts: creation, types and administration

A trustee mixes trust money with their own funds in a personal bank account. Which remedy is available to the beneficiaries?

  1. An action for conversion against the trustee's accountant
  2. An application to the court to vary the trust deed
  3. A claim for damages for breach of contract against the bank
  4. A proprietary claim to trace the trust money into the mixed fund Correct answer.

Explanation

Beneficiaries may trace trust property into a mixed fund and assert a proprietary claim, including a charge over the fund to the extent of the misapplied amount. Tracing is an equitable remedy that follows the value of the trust property.

Question 11Trusts: creation, types and administration

Which of the following is required for a valid declaration of trust over existing personal property?

  1. Registration of the trust with the Charity Commission
  2. Delivery of the property to the beneficiaries
  3. Clear evidence of an intention to hold the property on trust, coupled with certainty of subject matter and objects Correct answer.
  4. Execution of a deed witnessed by two independent persons

Explanation

A declaration of trust over existing personal property requires certainty of intention, subject matter and objects. No deed, registration or delivery is necessary unless statute requires it for the particular asset.

Question 12Trusts: creation, types and administration

A settlor executes a deed transferring shares to a trustee, but the share transfer form is never registered. What is the effect on the constitution of the trust?

  1. The trust is void for uncertainty of subject matter
  2. The trust is incompletely constituted unless the settlor has done everything necessary to transfer the shares Correct answer.
  3. The trust is valid but the trustee holds only a contingent interest
  4. The trust is fully constituted because the deed is executed

Explanation

Equity will not perfect an imperfect gift; the trust is constituted only when the settlor has done everything in their power to transfer the legal title. For shares, this generally requires completion of the transfer formalities.

Question 13Trusts: creation, types and administration

Which of the following statements best explains the rule in Saunders v Vautier?

  1. Adult beneficiaries of full capacity who together hold the entire beneficial interest may terminate the trust and demand the property Correct answer.
  2. A beneficiary may terminate the trust unilaterally regardless of the interests of others
  3. A trustee may terminate the trust whenever the fund falls below a set value
  4. The court may terminate any trust on the application of the settlor

Explanation

The rule allows adult, sui juris beneficiaries who between them own the whole beneficial interest to call for the trust property and bring the trust to an end. The rule reflects the principle that the beneficiaries are the true owners in equity.

Question 14Trusts: creation, types and administration

A trustee invests the entire trust fund in a single speculative start-up company, contrary to the trust's investment clause. Which of the following is the most appropriate characterisation?

  1. A breach of the trustee's duty to invest prudently and within the terms of the trust Correct answer.
  2. An act that requires ratification by the settlor before it is valid
  3. A valid exercise of the trustee's discretion because the investment was authorised by statute
  4. A breach of the no-conflict rule only

Explanation

Trustees must invest prudently and within the powers conferred by the trust instrument and statute. Concentrating the whole fund in a single speculative venture exceeds those powers and breaches the duty of care.

Question 15Trusts: creation, types and administration

Which of the following best describes the fiduciary nature of a trustee's duty when exercising a discretionary power of appointment?

  1. The trustee must consider the range of beneficiaries and not act for an improper purpose or under dictation Correct answer.
  2. The trustee may act in their own interest provided they disclose it
  3. The trustee must obtain court approval before each appointment
  4. The trustee must distribute equally among all potential beneficiaries

Explanation

A fiduciary power must be exercised in good faith, after genuine consideration of the class of objects, and for the purpose for which it was conferred. The trustee must not fetter discretion or act under the dictation of another.

Question 16Trusts: creation, types and administration

A person receives trust property knowing that it has been transferred in breach of trust. What is the principal equitable claim against them?

  1. Negligence
  2. Conversion
  3. Dishonest assistance
  4. Knowing receipt Correct answer.

Explanation

Knowing receipt is the claim against a recipient of trust property who takes with knowledge of the breach. It is distinct from dishonest assistance, which targets those who facilitate a breach without necessarily receiving property.

Question 17Trusts: creation, types and administration

Which of the following statements correctly describes a constructive trust?

  1. It is a form of charitable purpose trust
  2. It requires a written declaration signed by the settlor
  3. It arises only where a settlor has used precatory words
  4. It is imposed by law to prevent unconscionability, regardless of the parties' intentions Correct answer.

Explanation

A constructive trust is imposed by equity where the circumstances make it unconscionable for the legal owner to retain the beneficial interest. It does not depend on the parties' express intention to create a trust.

Question 18Trusts: creation, types and administration

A trustee retires from office and a new trustee is appointed. What is the effect on the retiring trustee's liability for breaches committed while in office?

  1. The retiring trustee becomes liable for the new trustee's future breaches
  2. The retiring trustee remains liable for breaches committed during their trusteeship Correct answer.
  3. The retiring trustee is automatically released from all past liability
  4. The retiring trustee's liability transfers to the beneficiaries

Explanation

Retirement does not extinguish liability for breaches already committed; the retiring trustee remains accountable for their own acts. A release or indemnity may be negotiated, but it is not automatic.

Question 19Trusts: creation, types and administration

Which of the following is a valid charitable purpose under the Charities Act 2011?

  1. The relief of poverty Correct answer.
  2. The pursuit of a commercial business for profit
  3. The promotion of a political party
  4. The private benefit of the settlor's family

Explanation

The relief of poverty is one of the recognised charitable purposes listed in the Charities Act 2011. Charitable status requires a purpose within the list and benefit to the public.

Question 20Trusts: creation, types and administration

A settlor transfers property to trustees on trust 'for such purposes as they think fit'. Which of the following best explains the validity of this trust?

  1. It is valid as a charitable trust because the purposes are benevolent
  2. It is void because it is a non-charitable purpose trust lacking ascertainable beneficiaries Correct answer.
  3. It is valid because the settlor's intention is clear
  4. It is valid as a discretionary trust because the trustees are given discretion

Explanation

Non-charitable purpose trusts are generally void because there is no beneficiary who can enforce them. The mere clarity of the settlor's intention does not cure the absence of ascertainable objects.

Question 21Trusts: creation, types and administration

Which of the following is the correct description of the duty of care applicable to trustees under the Trustee Act 2000?

  1. A duty to exercise such care and skill as is reasonable in the circumstances, having regard to any special knowledge the trustee has Correct answer.
  2. A duty to consult the settlor before every decision
  3. A duty to guarantee that investments will not lose value
  4. A duty to act only on the directions of the beneficiaries

Explanation

The Trustee Act 2000 imposes a duty to exercise reasonable care and skill, with regard to any special knowledge or experience the trustee holds or claims. It is not a guarantee against loss.

Question 22Trusts: creation, types and administration

A beneficiary of a fixed trust wishes to sell their beneficial interest to a third party. Which of the following is required?

  1. The disposition requires the consent of every other beneficiary
  2. The disposition must be in writing and signed by the beneficiary Correct answer.
  3. The disposition must be registered with the court
  4. The disposition is void unless made by deed

Explanation

Section 53(1)(c) of the Law of Property Act 1925 requires a disposition of an equitable interest to be in writing and signed by the disponor. A deed is not required unless the instrument itself demands one.

Question 23Trusts: creation, types and administration

Which of the following best explains why a trust may be preferred to an outright gift for a minor beneficiary?

  1. The trust removes the beneficiary's interest entirely
  2. The trust avoids the need for any formalities
  3. The trust guarantees that the beneficiary will never lose the property
  4. The trust allows the trustee to manage the property until the beneficiary reaches the age specified Correct answer.

Explanation

A trust allows the legal owner to manage property for the benefit of a minor and to control when and how the beneficiary receives it. An outright gift to a minor transfers ownership immediately, which may be undesirable.

Question 24Trusts: creation, types and administration

A trustee honestly but negligently invests trust funds in a scheme that produces a loss. Which of the following is the correct measure of liability?

  1. The trustee is never liable for investment losses
  2. The trustee is liable only if they acted dishonestly
  3. The trustee must make good the loss caused by the breach of duty Correct answer.
  4. The trustee is liable for the loss only if the beneficiaries can prove fraud

Explanation

A trustee who breaches the duty of care is liable to make good the loss to the trust, even if they acted honestly. Dishonesty is relevant to certain third-party claims, not to a trustee's own breach of duty.

Question 25Trusts: creation, types and administration

Which of the following statements about the rule against perpetuities in relation to trusts is correct?

  1. A non-charitable trust must vest within the statutory perpetuity period Correct answer.
  2. The rule applies only to trusts of land
  3. A trust may last indefinitely provided the trustee consents
  4. The rule applies only to charitable trusts

Explanation

The rule against perpetuities requires that a non-charitable trust vest within the statutory period, currently 125 years under the Perpetuities and Accumulations Act 2009. Charitable trusts are exempt.

Question 26Trusts: creation, types and administration

A settlor says to a friend, 'I give you these shares, but you must hold them for my daughter.' Which of the following is required for this arrangement to take effect as a valid trust?

  1. Certainty of the settlor's intention to create a trust, of the subject matter, and of the objects Correct answer.
  2. Payment of consideration by the daughter to the friend
  3. Registration of the arrangement with the court before the trust can arise
  4. A written deed executed by the daughter as well as the settlor

Explanation

A valid express trust requires the three certainties: certainty of intention, certainty of subject matter and certainty of objects. Once those are satisfied and any formalities for the property are met, the trust arises without court registration or beneficiary consent.

Question 27Trusts: creation, types and administration

A testator leaves a fund 'to my trustees to hold for my grandchildren in such shares as my trustees shall in their absolute discretion decide'. Which type of trust does this create?

  1. A fixed trust, because the class of grandchildren is closed at the testator's death
  2. A resulting trust for the testator's estate, because the shares are not specified
  3. A bare trust, because the trustees hold for the grandchildren absolutely
  4. A discretionary trust, because no beneficiary has a fixed entitlement until the trustees exercise their discretion Correct answer.

Explanation

Where trustees have discretion over the amount each object receives, the trust is discretionary and no individual beneficiary has a fixed proprietary entitlement before the discretion is exercised. The class being closed does not convert it into a fixed trust.

Question 28Trusts: creation, types and administration

A trustee uses trust funds to buy a painting that is registered in the trustee's own name. Which of the following best describes the beneficiaries' position in relation to the painting?

  1. They have no claim because legal title to the painting is in the trustee
  2. They have an equitable proprietary interest in the painting, which is treated as trust property Correct answer.
  3. They are unsecured creditors of the trustee for the amount spent
  4. They must prove a debt in the trustee's bankruptcy before recovering anything

Explanation

Where a trustee purchases property with trust money, the beneficiaries acquire an equitable proprietary interest in that property, and it is treated as held on trust. This proprietary claim takes priority over the trustee's personal creditors.

Question 29Trusts: creation, types and administration

A trustee wishes to appoint an agent to manage the trust's investments. Under the Trustee Act 2000, which of the following is the trustee's principal obligation when doing so?

  1. To appoint only a fellow trustee as agent
  2. To delegate the whole of the trust's administration to a single agent
  3. To obtain the beneficiaries' written consent before any delegation
  4. To exercise the statutory duty of care in selecting and supervising the agent Correct answer.

Explanation

The Trustee Act 2000 permits delegation of investment management but requires trustees to exercise the statutory duty of care when choosing and monitoring the agent. The trustee remains liable for the agent's acts if that duty is breached.

Question 30Trusts: creation, types and administration

A trustee of a discretionary trust is also a beneficiary within the class of objects. Which of the following best describes the trustee's position when deciding distributions?

  1. The trustee's fiduciary duty requires them to exclude their own interest from consideration when exercising the discretion Correct answer.
  2. The trustee must obtain court approval before any distribution to themselves
  3. The trustee's discretion is void because a trustee cannot also be a beneficiary
  4. The trustee may distribute to themselves without any restriction because they are an object

Explanation

A trustee who is also an object must exercise the discretion impartially and must not allow their personal interest to influence the decision. Self-dealing is subject to strict scrutiny and may be set aside unless authorised.

Question 31Trusts: creation, types and administration

A settlor executes a valid declaration of trust over a leasehold flat in favour of their children. Which of the following formalities applies to the declaration?

  1. It must be made by will
  2. It requires no writing because the flat is leasehold rather than freehold
  3. It must be evidenced in writing signed by the settlor, as required for trusts of land Correct answer.
  4. It requires registration at the Land Registry before the trust is effective

Explanation

Section 53(1)(b) of the Law of Property Act 1925 requires a declaration of trust relating to land to be proved by signed written evidence. A leasehold flat is land for this purpose.

Question 32Trusts: creation, types and administration

A trustee holds a legacy for a beneficiary absolutely. The beneficiary, aged 25 and of full capacity, is the sole beneficiary and demands transfer of the fund. Which of the following best describes the trustee's position?

  1. The trustee must continue to hold the fund until the trust instrument's stated termination date
  2. The trustee must apply to the court for directions before transferring the fund
  3. The trustee may refuse because the trust instrument does not authorise early termination
  4. The trustee must transfer the fund because the beneficiary may terminate the trust under the rule in Saunders v Vautier Correct answer.

Explanation

Where all beneficiaries are of full age and capacity and together absolutely entitled, they may call for the trust property and terminate the trust. The trustee is bound to comply.

Question 33Trusts: creation, types and administration

A trustee receives a bribe from a third party in return for awarding a trust contract to that party. Which of the following best describes the beneficiaries' principal remedy?

  1. Recovery of the bribe from the trustee as a personal claim, held on constructive trust for the beneficiaries Correct answer.
  2. A claim for damages for negligence against the trustee
  3. An order that the contract is automatically void and of no effect
  4. An action in contract against the third party for the value of the contract

Explanation

A trustee who takes a secret profit or bribe holds it on constructive trust for the beneficiaries and must account for it. The beneficiaries may also have remedies against the third party, but the primary claim is to the bribe.

Question 34Trusts: creation, types and administration

Which of the following best explains the difference between an express trust and a resulting trust?

  1. An express trust must be charitable, whereas a resulting trust must be for individuals
  2. An express trust arises by operation of law, whereas a resulting trust is created deliberately by the settlor
  3. An express trust requires no certainty of objects, whereas a resulting trust does
  4. An express trust is created intentionally by the settlor, whereas a resulting trust arises by operation of law where beneficial ownership is not fully disposed of Correct answer.

Explanation

Express trusts are deliberately created, while resulting trusts arise by operation of law, typically where a beneficial interest is not fully disposed of or where a purchase is made in another's name. Both require certainty of subject matter.

Question 35Trusts: creation, types and administration

A trustee holds shares in a company that pays a dividend after the trustee has retired and been replaced. Who is entitled to the dividend?

  1. The trust fund, because the dividend is trust property whenever received Correct answer.
  2. The retiring trustee personally, as compensation for past service
  3. The new trustee personally, as the current legal owner
  4. The settlor, because the trust has changed trustees

Explanation

Trust property, including dividends received on trust investments, belongs to the trust fund and not to the trustees personally. A change of trustee does not alter beneficial ownership.

Question 36Trusts: creation, types and administration

A trustee is considering whether to insure trust property against fire. Which of the following best describes the trustee's duty in this respect?

  1. A trustee has an absolute duty to insure all trust property against every risk
  2. A trustee should consider insurance as part of the duty to preserve trust property and act prudently Correct answer.
  3. A trustee has no duty to insure unless the trust instrument expressly requires it
  4. A trustee may insure only with the beneficiaries' unanimous consent

Explanation

Trustees have a duty to preserve the trust property and act prudently, which ordinarily includes considering appropriate insurance. The Trustee Act 2000 also gives trustees power to insure trust property.

Question 37Trusts: creation, types and administration

A trustee holds land on trust for two beneficiaries in equal shares. One beneficiary wants to sell the land; the other objects. Which of the following best describes the trustee's duty?

  1. The trustee must refuse to sell because one beneficiary objects
  2. The trustee must sell immediately because one beneficiary demands it
  3. The trustee must transfer the land to the beneficiaries as tenants in common and cease to act
  4. The trustee must act impartially and in the best interests of the trust as a whole, considering both beneficiaries' views Correct answer.

Explanation

Trustees must act impartially between beneficiaries and in the best interests of the trust, weighing competing wishes rather than automatically following one. A sale is a matter of trustee discretion exercised properly.

Question 38Trusts: creation, types and administration

A trustee of a will trust discovers that the testator's estate includes a debt owed to the trust that has become time-barred. Which of the following best describes the trustee's position?

  1. The trustee has no duty in relation to debts owed to the trust
  2. The trustee must personally repay the debt to the trust
  3. The trustee should consider whether to pursue the debt, taking into account the limitation period and the cost of recovery Correct answer.
  4. The trustee must write off the debt immediately because it is time-barred

Explanation

Trustees must take reasonable steps to collect trust assets, but they may properly decide not to pursue a time-barred or uneconomic debt. The decision should be made prudently and in the trust's interests.

Question 39Trusts: creation, types and administration

A settlor transfers property to trustees on terms that are so vague that the trustees cannot identify what property is subject to the trust. Which of the following is the most likely consequence?

  1. The trust is valid because the trustees can choose the property later
  2. The trust fails for uncertainty of subject matter, and the property may be held on resulting trust for the settlor Correct answer.
  3. The trust is valid but the trustees hold the property on a bare trust
  4. The trust is voidable at the beneficiaries' election

Explanation

Certainty of subject matter is essential; if the property cannot be identified, the trust fails. The property is then typically held on resulting trust for the settlor or their estate.

Question 40Trusts: creation, types and administration

A trustee invests trust funds in a company that later becomes insolvent. The trustee had obtained professional advice and acted in good faith. Which of the following best describes the trustee's liability?

  1. The trustee is liable only if the beneficiaries can prove dishonesty
  2. The trustee is strictly liable for all losses regardless of the advice obtained
  3. The trustee is automatically liable because the investment produced a loss
  4. The trustee is not liable if they acted honestly and reasonably and ought fairly to be excused by the court Correct answer.

Explanation

Under section 61 of the Trustee Act 1925, a trustee who has acted honestly and reasonably may be relieved by the court from liability for a breach. Good faith and proper advice are relevant to that relief.

Question 41Estates: wills, intestacy and probate administration

Under the law of England and Wales, which document takes effect only on the death of the person who made it and must be revoked by the testator during life if it is to lose effect?

  1. A statutory declaration
  2. A lasting power of attorney
  3. A will Correct answer.
  4. A deed of gift

Explanation

A will is ambulatory and only operates on death, so it has no effect while the testator is alive. Because it speaks from death, the testator can revoke or amend it at any time before dying, provided capacity exists. The other instruments take effect during life or serve evidential purposes.

Question 42Estates: wills, intestacy and probate administration

A testator signs her will in the presence of two witnesses, but one witness is the testator's spouse. What is the effect on the will?

  1. The will is void unless the witness signs a disclaimer
  2. The will is wholly void because a beneficiary witnessed it
  3. The will is valid and the gift to the spouse remains fully effective
  4. The will is valid, but any gift to the witness's spouse is void Correct answer.

Explanation

Section 15 of the Wills Act 1837 voids gifts to an attesting witness or to that witness's spouse or civil partner, but the witnessing defect does not invalidate the will as a whole. The will remains admissible to probate, with the tainted gift failing. The spouse's attestation is still effective for due execution purposes.

Question 43Estates: wills, intestacy and probate administration

Which statement correctly describes the formal requirements for a valid will under section 9 of the Wills Act 1837 as amended?

  1. The will must be signed by the testator and by a solicitor who drafted it
  2. The will must be in writing, signed by the testator or by someone in his presence and by his direction, and attested by two witnesses present at the same time Correct answer.
  3. The will may be oral if two witnesses can testify to its terms
  4. The will must be signed by the testator and by three witnesses in the testator's presence

Explanation

Section 9 requires writing, signature by the testator or by a person in his presence and by his direction, and attestation by two witnesses present at the same time. The witnesses must also sign or acknowledge their signatures in the testator's presence. Oral wills and single-witness or solicitor-witnessed formalities do not satisfy the section.

Question 44Estates: wills, intestacy and probate administration

A testator makes a will leaving everything to his partner, then later marries without making a new will. What is the effect of the marriage on the will?

  1. The will is revoked only if the partner consents in writing
  2. The will is revoked by the marriage unless it was made in contemplation of that marriage Correct answer.
  3. The will is suspended for twelve months and then revives automatically
  4. The will remains fully valid because marriage does not affect testamentary instruments

Explanation

Section 18 of the Wills Act 1837 revokes a will on marriage or civil partnership, unless the will was made in contemplation of that specific marriage and shows that intention. The revocation operates automatically by operation of law. A new will or a properly drafted contemplation clause is needed to preserve the intended disposition.

Question 45Estates: wills, intestacy and probate administration

A testator's will is destroyed by burning, but the testator did not intend to revoke it. Which statement best reflects the law on revocation by destruction?

  1. Physical destruction alone always revokes the will regardless of intent
  2. Revocation by destruction is impossible once the will has been signed
  3. Revocation requires both a physical act of destruction and the intention to revoke Correct answer.
  4. Destruction by a third party always revokes the will if the testator later dies

Explanation

Section 20 of the Wills Act 1837 requires destruction with the intention of revoking the will. Accidental destruction, or destruction by another without the testator's direction, does not revoke. The mental element of animus revocandi must accompany the physical act.

Question 46Estates: wills, intestacy and probate administration

What is the effect of a codicil on an existing will?

  1. It has no legal effect unless the will is republished
  2. It amends or supplements the will and is treated as part of it, but does not revoke it Correct answer.
  3. It operates only if the original will has been lost
  4. It revokes the will in its entirety and replaces it

Explanation

A codicil is a testamentary instrument that alters, adds to, or confirms an existing will. It is proved with the will and is read together with it, but it does not revoke the will outright. It must satisfy the same execution formalities as a will.

Question 47Estates: wills, intestacy and probate administration

A testator leaves 'my residuary estate to my sister, absolutely.' What does the phrase 'absolutely' signify in this gift?

  1. The sister takes a life interest only
  2. The sister takes an unconditional, outright interest Correct answer.
  3. The sister holds the property on trust for the testator's children
  4. The sister must distribute the property to the family

Explanation

An absolute gift confers outright ownership with no trust or condition attached. The beneficiary may deal with the property as she wishes and it forms part of her estate on death. Contrast this with a life interest or a gift on trust.

Question 48Estates: wills, intestacy and probate administration

In a will, a testator leaves 'the residue of my estate to be divided between such of my nephews as survive me.' What type of gift is this?

  1. A specific legacy
  2. A class gift contingent on survivorship Correct answer.
  3. A demonstrative legacy
  4. A general legacy

Explanation

A class gift identifies beneficiaries by a description rather than by name, and here survivorship is an express condition. Because the nephews must survive the testator, the gift is contingent. Specific, demonstrative, and general legacies all refer to particular property or sums rather than a class of people.

Question 49Estates: wills, intestacy and probate administration

A testator's will contains a gift to 'my daughter, if she attains the age of 21.' The daughter is 17 when the testator dies. What is the status of the gift?

  1. It vests immediately on the testator's death
  2. It is contingent and vests only if she reaches 21 Correct answer.
  3. It passes to the residuary beneficiary until she turns 21
  4. It fails automatically because she is a minor

Explanation

A condition precedent such as attaining 21 makes the gift contingent, so vesting is postponed until the condition is satisfied. If the daughter dies before 21, the gift lapses unless a substitutionary clause applies. Being a minor does not of itself defeat the gift.

Question 50Estates: wills, intestacy and probate administration

What is a legacy in the context of will drafting?

  1. The revocation of a prior will
  2. A gift of freehold land
  3. The appointment of an executor
  4. A gift of personal property, often money, other than real estate Correct answer.

Explanation

A legacy is a testamentary gift of personalty, commonly a sum of money, whereas a devise historically refers to a gift of real property. The distinction matters when interpreting a will. An executor appointment or revocation is not a gift at all.