SQE1SQE1 Prep
FeaturesCurriculumPricingBlogFAQ
Home/SQE1 Subjects/Trusts Law
TRFLK2 · 11 topics

SQE1 Trusts Law.

Express, resulting, and constructive trusts.

Get full TR accessGet a free study plan

All 11 topics in Trusts Law

SRA-aligned
  1. 01

    Three Certainties and Creation of Express Trusts

    The three certainties required to create a valid express trust, and the differences between fixed interest and discretionary trusts

    Free
  2. 02

    Formalities and Constitution of Express Trusts

    Legal formalities for creating trusts, constitution of trusts, secret trusts, and exceptions to the beneficiary principle

  3. 03

    Beneficial Entitlement and Trust Types

    Fixed interest trusts, discretionary trusts, life interests, and the rule in Saunders v Vautier

  4. 04

    Charitable Trusts and Non-Charitable Purpose Trusts

    Charitable purposes, public benefit, non-charitable purpose trusts, cy-près, and Charity Commission powers

  5. 05

    Resulting Trusts

    Presumed resulting trusts, presumption of advancement, Quistclose trusts, and the distinction between resulting and constructive trusts

  6. 06

    Trusts of the Family Home and Proprietary Estoppel

    Common intention constructive trusts, quantifying shares, and proprietary estoppel

  7. 07

    Liability of Strangers to the Trust

    Knowing receipt and dishonest assistance — when third parties can be liable for breach of trust

  8. 08

    Fiduciary Relationships and Obligations

    Nature of fiduciary relationships, key duties (no profit, no conflict, no purchase of trust property), and remedies for breach

  9. 09

    Trustees — Appointment, Powers and Duties

    Appointment and removal of trustees, statutory duty of care, investment duties, and key powers

  10. 10

    Trustees' Liability and Protection

    Breach of trust, measures of liability, trustee protection, limitation periods, and variation of trusts

  11. 11

    Equitable Remedies and Tracing

    Equitable remedies (injunction, specific performance, rescission, rectification, account of profits) and tracing in equity

Try before you buy

4 sample TR questions

Real SBA questions from the Trusts Law bank, with the full explanation. The paid bank covers all 11 topics and difficulty levels.

Which of the following statements best describes an express trust?

  1. A trust that is intentionally created by a settlor, usually by deed or will, declaring that specified property is to be held on trust for identified beneficiaries. Correct
  2. A trust that arises automatically by operation of law when property is transferred without the donor's clear intention.
  3. A trust imposed by a court to prevent a person from unjustly retaining property obtained through fraud or unconscionable conduct.
  4. A trust that arises where property is transferred to a person who then dies before completing the intended gift.
  5. A trust that is created by statute to protect the interests of minor beneficiaries under a will.
Why: The correct answer is A. An express trust is a trust that is intentionally created by the settlor, usually by a deed or a will, in which the settlor declares that specified property is to be held on trust for identified beneficiaries. Express trusts arise where the settlor has deliberately set out the terms of the trust. B is incorrect because this describes an implied trust (resulting trust), not an express trust. C is incorrect because this describes a constructive trust, which is imposed by law rather than intentionally created by a settlor. D is incorrect because this describes a resulting trust arising from a failed gift. E is incorrect because express trusts are created by the settlor, not by statute.

Which of the following is a key characteristic of an express trust?

  1. The trust involves a split of ownership: legal title is held by the trustee and equitable (beneficial) ownership is held by the beneficiary. Correct
  2. The trust requires all three parties — settlor, trustee, and beneficiary — to be alive at the same time for the trust to be valid.
  3. The trust must be created by deed; a trust created by will is not an express trust.
  4. The trust is a mere power that gives the trustee discretion but no binding obligation to distribute property.
  5. The trust requires the settlor to retain legal title to the trust property throughout the trust's duration.
Why: The correct answer is A. A fundamental characteristic of an express trust is the split of ownership: legal title is held by the trustee and equitable (beneficial) ownership is held by the beneficiary. This dual ownership is what distinguishes a trust from an outright gift. B is incorrect because the settlor does not need to be alive at the same time as the beneficiaries — trusts are commonly created by will and take effect on death. C is incorrect because express trusts can be created either by deed (inter vivos) or by will (testamentary). D is incorrect because a trust imposes a binding obligation on the trustee, unlike a mere power which gives discretion. E is incorrect because the settlor transfers legal title to the trustee when constituting the trust.

What is the key distinction between a trust and a mere power?

  1. A trust requires a written deed, whereas a mere power can be created orally.
  2. A trust can only be created for named individuals, whereas a mere power can benefit a class of persons.
  3. A trust requires all three certainties, whereas a mere power requires only certainty of intention and subject matter.
  4. A trust must be created during the settlor's lifetime, whereas a mere power can only arise on death.
  5. A trust imposes a mandatory obligation on the trustee to distribute property to beneficiaries, whereas a mere power gives the trustee discretion to distribute or not. Correct
Why: The correct answer is E. The key distinction is that a trust imposes a mandatory obligation on the trustee to distribute property to the beneficiaries, whereas a mere power gives the trustee discretion to distribute or not. This distinction is critical because the certainty requirements differ significantly between the two. A is incorrect because both trusts and powers can be created by deed or by will; written form is not the distinguishing feature. B is incorrect because both trusts and powers can benefit named individuals or classes of persons. C is incorrect because both trusts and powers require certainty of intention; the difference is in the objects test. D is incorrect because both trusts and powers can be created either during lifetime or on death.

Which of the following statements best distinguishes an express trust from an implied trust?

  1. An express trust can only be created during the settlor's lifetime, whereas an implied trust can only arise on the settlor's death.
  2. An express trust requires a written document, whereas an implied trust can arise from the conduct of the parties.
  3. An express trust is deliberately created by the settlor who expressly declares the terms, whereas an implied trust is imposed by law based on presumed or inferred intention. Correct
  4. An express trust always requires the three certainties to be satisfied, whereas an implied trust never requires any certainty.
  5. An express trust benefits named individuals, whereas an implied trust can only benefit the settlor.
Why: The correct answer is C. The fundamental distinction is the source of the trust. Express trusts are deliberately created by the settlor, who expressly sets out the terms. Implied trusts (resulting and constructive) are imposed by law — resulting trusts arise from presumed intention and constructive trusts from inferred intention or to prevent unconscionable conduct. A is incorrect because express trusts can be created by will (taking effect on death) as well as during lifetime. B is incorrect because express trusts can be created orally in some circumstances (e.g., trusts of personal property), not only in writing. D is incorrect because implied trusts, particularly resulting trusts, also require the three certainties. E is incorrect because implied trusts can benefit various parties, not just the settlor; constructive trusts, for example, benefit the person defrauded.
Unlock the full TR bank14-day money-back · one-time payment

Common questions

Trusts Law FAQs

Express, resulting, and constructive trusts. The SRA assessment specification breaks Trusts Law into 11 topics, each examined through single-best-answer (SBA) questions in the FLK2 paper.
Trusts Law sits in FLK2. Both FLK2 papers are 180 single-best-answer questions in two 2h 5m sittings on the same day.
11. Our notes, flashcards, and question bank are mapped one-to-one against the SRA's TR specification so nothing is missed.
Most candidates allocate roughly 33–55 hours across notes, flashcards, and timed practice. The exact split depends on your background — re-sitters can usually focus on weak topics rather than re-reading.
Active recall beats re-reading. Read the notes once, then practise SBA questions in mixed order, then revisit weak topics. Our weak-area tracker surfaces the topics where your accuracy is below 70%.
Yes. The free readiness quiz includes a sample from every subject, and free accounts can access sample questions across all subjects. The full TR question bank is unlocked with any paid plan (1, 6, or 12 months) and is covered by the 14-day money-back guarantee.
14-day money-back guarantee

Ready to start preparing?

One-time payment. Pick the plan that fits your timeline. Start with the free readiness quiz.

Free readiness quizView pricing

Enjoying this? Unlock all 142 topics, mock exams & flashcards.

View Pricing
SQE1SQE1 Prep

Affordable SQE1 exam preparation — practice questions, flashcards, mock exams, and in-depth study notes built around how the exam actually works.

Download on theApp Store

Product

  • Features
  • How it works
  • Curriculum
  • Pricing

Resources

  • Blog
  • FAQ
  • About
  • Contact

Legal

  • Privacy
  • Terms
  • Refund
  • Cookies
  • Support

Disclaimer: SQE1 Prep is an independent educational platform. The content provided is for informational and educational purposes only and does not constitute legal advice.

© 2026 SQE1 Prep · Sitemap