Cambridge BA: Express Trusts & Formalities Exam Paper

Arthur, a wealthy art collector, owned several valuable paintings. In 2020, he executed a deed stating: 'I hereby declare myself trustee of my Picasso painting for my nephew Ben absolutely, to be held until he reaches 25.' Arthur continued to display the painting in his home and insure it in his own name. In 2021, Arthur verbally told his friend Charles: 'I want you to look after my Monet painting for my daughter Diana. She's only 16 now, but when she's mature enough, probably around 30, give it to her.' Charles agreed and took physical possession of the painting. In 2022, Arthur wrote in his diary: 'I have decided that my Van Gogh should go to my local art gallery for the benefit of the public.' He never communicated this to anyone. Arthur died in 2023. His will leaves his entire estate to his wife Emma, making no mention of the three paintings. Ben is now 23, Diana is 19, and the art gallery claims it should receive the Van Gogh. Emma argues she is entitled to all three paintings as Arthur's residuary beneficiary. Advise the parties as to their respective rights.

Victoria, a successful businesswoman, established a trust in January 2022 with the following terms: 'I transfer £500,000 to my trustees Thomas and Sarah to hold: (1) £200,000 for my children who qualify as barristers, in equal shares; (2) £150,000 for the maintenance of my elderly relatives who are in need; (3) £100,000 for charitable purposes as my trustees think fit; and (4) £50,000 for my friends who have been kind to me.' Victoria has three children: Peter (aged 30, a solicitor), Rachel (aged 28, a barrister), and Simon (aged 25, unemployed). Victoria's elderly relatives include her 80-year-old aunt Margaret (wealthy widow), 75-year-old uncle David (lives in modest circumstances), and 82-year-old cousin Eleanor (requires expensive medical care). Victoria died in December 2023. The trustees seek advice on distribution. Additionally, Victoria's residuary beneficiary Robert argues that provisions (2) and (4) should fail for uncertainty, with those funds reverting to the estate. Peter has since qualified as a barrister in February 2024. Thomas wants to retire as trustee and suggests his son Michael as replacement. Advise on all issues arising.

"The traditional requirement that trust property must be segregated from the trustee's own assets has been significantly relaxed by modern developments in equity." Critically evaluate this statement with reference to relevant case law and statutory provisions.

"The test for certainty of intention in express trusts has become increasingly flexible, with courts willing to find trust obligations in informal arrangements that would previously have been regarded as mere moral obligations." Discuss.