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A man intends to create a trust to benefit his daughter during her lifetime but ultimately he wants the trust fund to pass to his grandson.
The man transfers the trust fund to trustees to hold on trust for his daughter for life remainder to his grandson provided the grandson qualifies as a solicitor in England and Wales.
After the trust is created, the daughter and grandson are involved in a car accident. The grandson dies at the scene of the accident and the daughter dies shortly afterwards in hospital. The grandson was in his second year of a law degree in London.
The trustees seek advice as to who is entitled to the trust fund.
Which of the following statements best describes who is entitled to the trust fund?
A. The trust fund belongs to the daughter’s estate as she survived the grandson.
B. The trust fund belongs to the grandson’s estate as it was the settlor’s intention that the grandson should take it on the death of the daughter.
C. The trust fund belongs to the man as the grandson failed to survive the daughter.
D. The trust fund will be shared equally between the daughter’s and grandson’s estates.
E. The trust fund belongs to the man as the grandson failed to satisfy the condition.
E - The trust fund belongs to the man as the grandson failed to satisfy the condition.
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