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At his death, a man had an extensive portfolio of shares in both private and public companies. The portfolio is managed by a stockbroker. The man’s will appoints executors and trustees and includes the following provision:
“I give all my shares in the five best performing companies in which I hold shares to my trustees on trust for such of my grandchildren as survive me and attain the age of 18 in equal shares.”
The remainder of the man’s estate is divided between his children.
The trustees are concerned as to which, if any, shares are trust property under the above clause.
Has a valid trust of shares been created by the clause in the will?
A. No, as the will fails to distinguish between the public and private shares.
B. Yes, as the trustees are able to use their judgement to select the shares to be placed on trust.
C. Yes, as the stockbroker is able to determine which companies are the best performing.
D. No, as the criteria by which the shares are described are ambiguous.
E. Yes, as the trustees, the grandchildren and the children can agree which shares to allocate to the trust.
D - No, as the criteria by which the shares are described are ambiguous.
Candidates who answered correctly: 62%
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