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EQUITY AND TRUST: TEST QUESTION

Sacha Poor, a local government employee, won £10m on the lottery and inherited some property from an unknown relative, Lady Alicia Moneybags, after their hunters identified him as Lady Moneybags next surviving relative. He decided that it was important to spend his money wisely so he set up some trust funds and wrote his will.
The National Lottery presented Sacha with his winnings at a publicity event. At the event, Sacha stated;
” Many members of my family have suffered from Cancer so I intend to set up a trust fund of £1,000,000 for the nursing care of cancer sufferers in Bradford. Therefore, 1,000,000 from this lottery cheque I will hold as trustee”.
” I also intend to hold £250,000 for each of my sons, William and Harry, to receive upon the completion of their University degrees by 2020″.
He executed a will in 2016 in which he made the following dispositions.
a. My Jaquar XJS,I leave to my neighbour, Adeel Khan.
b. I leave my collections of coins, stamps and war memorabilia to my brother John to distribute to my three nephews, Moe, Larry and Curley. Moe is to choose his collection first, Larry second and Curley receives the remaining collection.
c. I give the sum of £100,000 to my daughter Alexia knowing she will use the money wisely in securing the future of my nieces and nephews.
d. I was surprised at receiving an inheritance from Lady Moneybags but should I receive a similar inheritance again, that inheritance is to be held on trust by my daughter Alexia for any blood relative of mine or close family friend.
e. I leave the sum of £10,000 to my daughter Alexia to distribute amongst my work colleagues as she see fit, but if she is unable to do so, the money is to be donated to UNISON.
F. I would like my executor to distribute 1000 shares from my share portfolio to each of my old school friends, Arnie, Sly and Bruce.
g. £100,000 is to be held on trust for Bingley life savers Association for the training of lifeguards.
h. £500,000 is to be held by my former manager at Bradford council, Zonia Farooq, to fund a city centre street clean-up operation collecting rubbish from the street and activities such as removing graffiti, chewing gum and replanting trees destroyed or uprooted in winter storms and floods.
I. My residuary estate is to pass to Alexia.
Sacha died on the 1st January 2017 having spent 5 days in hospital after a car accident.
The day before he died , his son-in-law, Amraez, visited him. Sacha told Amraez that the doctors had given him a week to live as a result of his injuries and that he had not taken care of his business. He told Amraez ” I would like you to go to my house and take the jewellery that was in my safe and give it to Alexia when I die. ” He gave Amraez the code to the safe. He also gave Amraez the key to his house and asked him to ensure that it transferred to his ex-wife Saira Poor. The conversation was witnessed by two nurses. Sacha dies of MRSA which he contracted whilst in hospital.
Sacha’s nephew, Larry, died on the 2nd February 2017.

Analyse the issues above and with reference to case law and legislation on the requirements to expressed private and public trusts, write a report for Sacha’s daughter, Alexia, explaining how the property will be distributed.

 

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