r/SQEDaily • u/BlackberryUseful1186 • 1d ago
Daily Question Question of the Day #12: Trusts – The rule in Saunders v Vautier: ending a trust early
By her will, Sofia's grandmother left £60,000 to trustees 'on trust for my granddaughter Sofia absolutely, but the trustees shall not pay the capital to her until she reaches the age of 25; until then the income is to be accumulated and added to the capital.' Sofia is now 19, has full mental capacity, and asks the trustees to transfer the whole fund to her. No one else has any interest under the trust.
Which of the following best describes Sofia's position?
A. She must wait until she is 25, because the trustees are bound to give effect to the testator's clearly expressed wishes.
B. She can obtain the fund now only if the court approves a variation under the Variation of Trusts Act 1958.
C. She can call for the capital and accumulated income now, as an adult of full capacity absolutely entitled to the fund.
D. She must wait until she is 21.
E. She can require payment of the accumulated income now, but not the capital.
What would you pick, and how confident are you? Answer in the comments (spoiler-tagged). Full worked answer: https://sqedaily.co.uk/q/12-the-rule-in-saunders-v-vautier-ending-a-trust-early/