The Fielding Family Trust Provides That Property Is Held Upon

question 8

Multiple Choice

The Fielding Family Trust provides that property is held upon trust until 2030 to provide for the education of Francis Fielding's grandchildren, when the capital is to be distributed between such direct descendants of Francis Fielding as Francis Fielding's widow (Jasmine Fielding) shall by deed or will appoint. The trust expressly states that, should Jasmine Fielding (who is still alive) die making no appointment, the capital is to be divided in equal shares between the grandchildren of Francis Field.
The grandchildren have all completed their education to degree level and would like to distribute the capital immediately. Jasmine is prepared to assist.
Which, if any, of the following scenarios would allow the trust fund to be distributed immediately?

• A) Jasmine and the grandchildren are, between them, entitled to control the whole of the trust fund, so, provided they are of full age, they can call upon the trustees to terminate the trust.
• B) Jasmine can execute a deed appointing the grandchildren as beneficiaries. In consequence, the only beneficiaries will be the grandchildren, who, if of full age, can call upon the trustees to terminate the trust.
• C) Jasmine and the grandchildren do not need to do anything. Because the grandchildren have completed their education, the trustees have a duty to distribute the fund immediately. In the absence of any appointment by Jasmine, the trustees must distribute the fund between the grandchildren.
• D) Jasmine can execute a deed declaring that she will not exercise her power of appointment, and this will operate as a valid release of the power. In consequence, the only beneficiaries are the grandchildren, who, if of full age, can call upon the trustees to terminate the trust.

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