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TRFLK2 · 11 topics

SQE1 Trusts Law.

Express, resulting, and constructive trusts.

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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

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  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

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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.

A woman signs a deed transferring her portfolio of listed shares to her solicitor. The deed states that the solicitor is to hold the shares and their income for the woman's two nieces, aged 10 and 12, in equal shares until each of them reaches 25. The solicitor is registered as the holder of the shares and pays the income towards the nieces' school fees. Neither niece paid anything for her interest, and the woman reserved nothing for herself.

On what basis, if any, do the nieces have interests in the shares?

  1. Under an express trust, because the woman deliberately declared the terms on which the shares are held for identified beneficiaries. Correct
  2. Under a resulting trust, because the woman transferred the shares to the solicitor without receiving anything in return.
  3. Under a constructive trust, because the solicitor is registered as the holder of shares she did not pay for.
  4. Under a statutory trust, because the nieces are under 18 and cannot hold the legal title to the shares themselves.
  5. Under a contractual arrangement, because the solicitor has agreed with the woman to pay the income towards the school fees.
Why: The correct answer is A. An express trust is one that the settlor intentionally creates, usually by deed or by will, by declaring that specified property is to be held on trust for identified beneficiaries. That is what this deed does: it identifies the property (the portfolio), the trustee (the solicitor) and the beneficiaries (the two nieces in equal shares), so the nieces' interests arise from the woman's own declaration and not by operation of law. B is incorrect because a resulting trust arises where a transfer leaves the beneficial interest undisposed of so that it returns to the transferor; here the deed disposes of it expressly to the nieces and the woman kept nothing back. C is incorrect because a constructive trust is imposed by law to prevent a person retaining property unconscionably, whereas the solicitor holds under an express declaration and has done nothing wrong. D is incorrect because no trust is created by statute in these circumstances; the nieces' age does not change the basis on which their interests arise. E is incorrect because the deed binds the solicitor as trustee for the nieces, who gave no consideration and are not parties to any bargain.

A man transfers his buy-to-let flat to his sister and asks her to hold it for his young daughter until she reaches 21. The sister is registered at the Land Registry as the proprietor. She collects the rent, pays the outgoings and keeps the balance in a separate account for the daughter. The daughter is now 12. The man has since died, and the sister continues to manage the flat in the same way.

How is ownership of the flat divided while the daughter is under 21?

  1. The sister holds the legal title to the flat and the daughter holds the equitable interest in it. Correct
  2. The sister holds both the legal title and the equitable interest until the daughter reaches 21.
  3. The daughter holds the legal title to the flat and the sister holds the equitable interest in it.
  4. The sister holds the legal title and the man's estate holds the equitable interest in the flat.
  5. The sister and the daughter each hold half of the legal title and half of the equitable interest in the flat.
Why: The correct answer is A. The defining feature of an express trust is the split of ownership it creates: the trustee holds the legal title while the beneficiary holds the equitable, or beneficial, interest. The sister is the registered proprietor, so the legal estate is hers, but she holds it for the daughter, who is entitled to the income now and to the flat itself at 21. That division is why a trustee cannot treat trust property as her own. B is incorrect because the sister holds the legal title only; the beneficial interest belonged to the daughter from the moment the trust was constituted, not from her twenty-first birthday. C is incorrect because a minor cannot hold a legal estate in land at all (Law of Property Act 1925, s.1(6)), which is one reason trustees are used in this way. D is incorrect because the man parted with both the legal and the beneficial ownership when he constituted the trust, so nothing in the flat remained in his estate. E is incorrect because the two interests are different in kind rather than shares of the same kind; neither party holds half of each.

A woman's will leaves the residue of her estate to her two trustees "to be divided equally between my three nieces". One niece has married a wealthy man and has no need of the money. The trustees think the other two nieces would benefit far more and propose to pay the whole residue to them. Those two nieces, who are adults, have written agreeing to that course. The wealthy niece has not been asked.

May the trustees pay the whole residue to the two nieces they have chosen?

  1. Yes, because trustees have a discretion to apply trust property in the way they think most beneficial.
  2. Yes, because the wealthy niece has no need of the money and so has nothing to complain of.
  3. No, because the trustees must first obtain the court's approval before departing from the terms of the will.
  4. Yes, because the two nieces who would receive the money have consented in writing to the proposal.
  5. No, because the will obliges them to distribute in fixed shares, leaving them no choice of beneficiary. Correct
Why: The correct answer is E. A trust imposes a mandatory obligation on the trustee, whereas a mere power confers a discretion that need not be exercised at all. The words used here — residue "to be divided equally between my three nieces" — create a fixed interest trust: each niece is entitled to a defined one-third share, and the trustees have no choice about who benefits or in what proportions. Paying the whole residue to two of them would be a breach of trust, however sensible the trustees consider it. A is incorrect because trustees have a discretion over beneficiaries only where the settlor has given them one, as with a discretionary trust or a power of appointment. B is incorrect because a beneficiary's wealth is irrelevant to a fixed entitlement; the third niece can enforce her share whether or not she needs it. C is incorrect because no approval is needed to carry out the will as written, and the court would not authorise a departure from it in these circumstances. D is incorrect because the consent of two of the three beneficiaries achieves nothing: under Saunders v Vautier (1841) beneficiaries may redirect a fund only if all of them are adult, of sound mind and together absolutely entitled, and the third niece has not even been asked.

A man buys a flat with his own savings but, because he is working abroad when the sale completes, asks for it to be conveyed into his brother's sole name. Nothing is said or written about how the flat is to be held. The man pays all the outgoings and stays there whenever he is in the country. Years later the brother refuses to transfer the flat, saying that it is his because no trust was ever declared and nothing was signed.

Does the absence of any declaration of trust defeat the man's claim to the flat?

  1. Yes, because a trust can only arise where a settlor has declared the terms on which property is held.
  2. Yes, because a trust of land is unenforceable unless its terms are evidenced in signed writing.
  3. No, because a trust may also be imposed by law where one person provides the purchase money. Correct
  4. No, because the brother agreed to hold the flat for him when the sale was completed.
  5. No, because the man remains the legal owner of the flat until he signs a transfer of it.
Why: The correct answer is C. An express trust is one the settlor deliberately creates by declaring its terms. Implied trusts — resulting and constructive — are different in source: they are imposed by law, from presumed or inferred intention, and so need no declaration at all. Where one person provides the purchase money and the property is put into another's name, equity presumes a resulting trust for the person who paid (Dyer v Dyer (1788)), and no presumption of advancement arises between brothers. The man's claim therefore does not depend on anything having been declared or signed. A is incorrect because it describes express trusts only; trusts also arise by operation of law. B is incorrect because the writing requirement for declarations of trust of land (Law of Property Act 1925, s.53(1)(b)) is expressly disapplied for resulting and constructive trusts by s.53(2). D is incorrect because no agreement was made; the facts state that nothing was said about how the flat was to be held. E is incorrect because the legal title passed to the brother on completion — what the man retains is the beneficial interest under the resulting trust.
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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 a one-time lifetime purchase and is covered by the 14-day money-back guarantee.
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