Bryan Establishes a Discretionary Trust in Favour of a Class

question 3

Multiple Choice

Bryan establishes a discretionary trust in favour of a class of beneficiaries comprising his children and their spouses.
One of the children, Mick, marries Jerry in Bali. The trustees accordingly make payments to Jerry. It later transpires that because Mick and Jerry had not been resident in Bali prior to the wedding, they are not, in fact, married.
Which of the following statements is the most accurate?

• A) The trustees will have committed a breach of trust only if, at the time they made payments to Jerry, they had reasonable cause to suspect that the marriage was invalid.
• B) The trustees will have committed a breach of trust only if, at the time they made the payments to Jerry, they actually knjew that the marriage was invalid.
• C) The trustees will have committed a breach of trust only if a court of competent jurisdiction declares annuls what appears on the face to have been a valid marriage.
• D) The trustees have committed a breach of trust by paying a person who is not within the class of objects of the trust, regardless of whether they were aware of this or not.

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