Shortly Before Her Death in 2008, Cassandra Set Up a Trust

question 9

Multiple Choice

Shortly before her death in 2008, Cassandra set up a trust under which property is held on trust for her husband George, and on his death for their children in equal shares, or in such shares as George, might by deed or will appoint. George died earlier this year, having fallen out with the children. In his will he left all his property to Cedric (a very close friend) 'including any property over which I can exercise a power of appointment'.
Which one or more of the following statements is true?

• A) George has failed to make a valid appointment, so the primary trust in favour of the children in equal shares will operate.
• B) George has exercised the power in the correct manner, so the appointment in favour of Cedric is effective.
• C) Even if the purported exercise of the power in favour of Cedric is ineffective, the children will get nothing if George used all the property during his lifetime.
• D) Because George is the donee of a power of appointment, not a trustee, the children have no rights which they can enforce.

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