LAWS2205 2021 Final Exam Paper PDF

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INSTRUCTIONS FOR PART B: PROBLEM QUESTION
The problem question is in this document. It has two parts. You must answer both parts. Submit your answer as a WORD document via the Turnitin submission link on the WATTLE course site. Include your student number (but not your name) in the file name f...

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AUSTRALIA AUSTRALIAN N NATIONAL UNI UNIVERSITY VERSITY ANU COLL COLLEGE EGE OF LA LAW W

Semester 2 – End of Semester Exam, 2021 LAWS220 LAWS2205 5 Equity and T Trusts rusts

Exam Date: Monday, 8 November 2021 Writing T Time: ime: 150 minutes (2.5 hours) Exam M Mode: ode: Online Exam - Wattle

IMPORTA IMPORTANT NT WARNING: Students are reminded that answers tto o this exam must be based on th their eir own wor work. k. Any collusion or communicat communication ion with other students or pe persons rsons about th the e contents of th this is exam during th the e period of th the e exam would con constitute stitute academ academic ic misconduct.

LAWS2205/6205 Equity & Trusts 2021 Final Examination Instructions & Problem Question GENERAL INSTRUCTIONS The exam is released on WATTLE at 12:30 AEDT on Monday, 8 November 2021 and must be completed by 15:00 AEDT on the same day. The exam is compulsory and nonredeemable. Failure to submit an answer will result in a mark of 0. The exam is worth 55% of the final course mark. The exam has two Parts: PART A: A multiple choice quiz worth 20 marks. PART B: A problem question with two parts and worth 35 marks in total. INSTRUCTIONS FOR PART A: MULTIPLE CHOICE QUIZ The quiz comprises 10 questions worth 2 marks each. It will be marked automatically according to the accuracy of understanding of course content. INSTRUCTIONS FOR PART B: PROBLEM QUESTION The problem question is in this document. It has two parts. You must answer both parts. Submit your answer as a WORD document via the Turnitin submission link on the WATTLE course site. Include your student number (but not your name) in the file name for your document. If you experience technical submission problems, email [email protected] (and cc [email protected]). Put LAWS2205/6205 in the subject line. Attach your answer and screenshots of what has occurred. This is not necessary if any delay is de minimis (up to 5 minutes late). Extensions of time are not permitted otherwise, unless Student Administration has confirmed special exam arrangements with you.

Recommended word range: the recommended word range for the problem question is 1,400 to 1,750 words. You are advised to keep within this range. Succinct legal reasoning that is to the point and does not include long sections of cut and pasted text is more persuasive and will be rewarded. Marks will be reduced for answers that are unnecessarily long. Equity & Trusts LAWS2205/6205 Final Examination 2021: Instructions and Problem Question Page 1 of 4

Referencing Requirements: Reference all authorities and all statements of law, but do so in the text of your answer using a (recognisable) shorthand name eg Boardman (as you would if this were a formal, handwritten, exam). Do not provide full citations. Do NOT use footnotes. It is acceptable to refer to the parties by their initials eg ‘F’ for ‘Freddy’. Formatting requirements: Exam answers should be formatted with 2 cm margins and 1.5 line spacing. Font should be 12 point. Assessment Criteria: refer to your class summary Deferred exams and special consideration: Late submission is not accepted for take-home examinations. Special consideration and deferred exams are administered centrally. Refer to the ANU website regarding the policy and procedures for requesting special consideration and/or a deferred examination. Academic Integrity: Penalties for breach of the University’s policies on academic honesty and plagiarism will be strictly enforced. Please check these policies if you are in any doubt as to what is required. In particular, note that it is your responsibility to ensure that ‘work submitted for assessment is genuine and original’. Your answer must be the product of your own work only. Do not communicate the contents of the exam or your answer with anyone before exam results are released. You should also be careful if sharing notes and summaries as this may lead to plagiarism or collusion. Cutting and pasting from past exam answers, lecturers’ lecture outlines and slides, and summaries that are not your own work, constitutes plagiarism.

The problem question follows on pages 3 (Part A) and 4 (Part B)

Equity & Trusts LAWS2205/6205 Final Examination 2021: Instructions and Problem Question Page 2 of 4

ANSWER BOTH PART A AND PART B OF THIS PROBLEM PART A

[15 marks]

Ken Behrens, a Canberra resident, died recently. Ken’s validly executed will contains the following provisions: 1. I leave my share portfolio to my friend, Adelaide, because I trust her judgment. For five years, I hope that she will distribute the annual income from the shares as she chooses amongst promising local musicians whose careers were put on hold by the Covid-19 pandemic. After five years, she must sell the shares and distribute the proceeds of sale to my neighbours. 2. I leave the residue of my estate, including my interest in 4 South Street, Queanbeyan, NSW, to the Canberra Museum and Art Gallery. Adelaide seeks your advice. She tells you that the property at 4 South Street, Queanbeyan, NSW, was purchased in the name of Ken’s niece, Victoria, in May 2021. Ken paid $50,000, one tenth of the purchase price of $500,000. Victoria paid the balance of the purchase price by way of a bank loan to her. Victoria claims that the $50,000 was a gift from Ken, but other family members disagree and say that Ken only paid the money to help Victoria qualify for a bank loan and on the understanding that he would be paid a proportionate (one tenth) share of the property’s value if or when Victoria sold the house. Adelaide cannot find documentation to support either view. The share portfolio referred to in clause 1. is worth $1 million. Advise Adelaide as to the legal effect of clause 1. of Ken’s will, and as to the nature of any interest held by Ken in the Queanbeyan property.

YOU MUST ALSO ANSWER PART B OF THIS QUESTION OVER THE PAGE

Equity & Trusts LAWS2205/6205 Final Examination 2021: Instructions and Problem Question Page 3 of 4

PART B

[20 marks]

John is trustee of the Tudor family trust. The beneficiaries of the trust are Kate, Liam and Mary. The trust deed includes the following provision:1. The trustee shall hold the trust fund upon trust and, from time to time, apply the income of the fund for the well-being, education and advancement in life of such of Kate, Liam and Mary as the trustee shall see fit. Upon Mary attaining the age of 18 years, the trustee shall pay the capital and income of the fund to Kate, Liam and Mary in equal shares. The trust property includes some land at Tuggeranong (in the southern suburbs of Canberra). In July 2021, John sold this land. The net proceeds of sale (after payment of conveyancing fees and the real estate agent’s commission) were $500,000. John deposited this sum into his personal bank account with the ANZ Bank, which had, prior to this deposit, a balance of $200,000. On 1st August 2021, John withdrew $50,000 from his ANZ Bank account, which he used to pay off his personal credit card debt. On 7th August 2021, John withdrew $200,000 from his ANZ Bank account, which he used to purchase shares in Fast Money Limited (FML). On 1st September 2021, he withdrew $400,000 and purchased shares in Solid Gold Limited (SGL) and had the title to the shares placed in the name of his wife, Elizabeth. John told Elizabeth that he was giving the shares to her as a birthday present. Elizabeth, at John’s request, signed all of the documentation necessary to have the shares transferred to her. John had previously given extravagant birthday presents to Elizabeth but nothing as extravagant as this. Nevertheless, Elizabeth did not ask John where the money came from to buy the shares. During October 2021, FML had gone into liquidation and its shares were now worthless. On 14th October 2021, Elizabeth sold one quarter of the SGL shares, yielding a sum of $100,000, which Elizabeth used to pay her outstanding credit card bill. Elizabeth still owns the rest of the SGL shares, which are valued at $300,000. Advise the beneficiaries of the Tudor family trust whether John has breached any of his duties as a trustee and what remedies the beneficiaries may obtain in respect of those breaches. Assume that there have been no deposits or withdrawals involving John’s ANZ Bank account other than detailed here.

END OF EXAMINATION

Equity & Trusts LAWS2205/6205 Final Examination 2021: Instructions and Problem Question Page 4 of 4...