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CELE SQE1 模拟练习

Examination Timing: 00H01M34S

Emma transfers 456 Elm Street to Rachel and Sarah. The transfer deed contains a clause which states that David must be allowed to occupy the property until he reaches the age of thirty. Which of the following statements best describes the position?

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The correct answer is C. Emma has transferred legal title to the property to Rachel and Sarah. However, the transfer is subject to David’s right to occupy the property until he reaches the age of thirty. This creates a trust where Rachel and Sarah are trustees and David is the beneficiary of the right to occupy the property. This arrangement involves the trustees holding the property on trust for the beneficiary who has a specific right or interest. 


Key Point: A trust is created when the legal title to property is transferred to trustees who hold it for the benefit of a beneficiary, particularly when specific conditions, such as a right to occupy, are included.

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