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CELE SQE1 模拟练习

Examination Timing: 00H01M08S

Mrs. Davies passed away, leaving all her estate to a charity. Among her papers, the executors found a document stating: "I hereby confirm that I am holding my holiday cottage on trust for my son and daughter-in-law." The document is dated a year ago and is signed by Mrs. Davies, but the signature is not witnessed. Mrs. Davies had taken no further action regarding the cottage, of which she was the sole registered proprietor. Her son and daughter-in-law, who are both adults, knew nothing about the document and had been estranged from her for six months before her death. They now claim that the cottage is held on trust for them and does not form part of Mrs. Davies's estate. Which of the following factors is relevant in deciding whether the cottage is held on trust for the son and daughter-in-law?

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For a trust to be validly created, the settlor (Mrs. Davies) must have the legal title to the property at the time the trust is declared. The fact that Mrs. Davies was the sole registered proprietor of the cottage when she declared the trust indicates that she had the legal title to the property. This factor is crucial because it demonstrates her capacity to declare a trust over the cottage. The lack of witness to her signature and the estrangement of her son and daughter-in-law do not affect the validity of the trust declaration itself. 


Key Point: In establishing the validity of a trust, the settlor must have legal title to the property when the trust is declared. This ensures that the settlor has the authority to impose the trust. Understanding the requirements for the creation of a valid trust is fundamental in trust law, especially regarding the formalities and the settlor's ownership of the property.

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