15 - Trust law

What is a trust?

relationship recognised in equity that arises where settlor places property under control of trustee for the benefit of beneficiary

what are express private trusts?

intentionally made by settlor

can the same person be the settlor, trustee and beneficiary?

Yes

what are three main categories of express private trust?

bare trust, int in possession and discretionary

what are key statutes of trusts?

Trustee Act 1925, Trusts of Land, Appointment of Trustees 1996, Trustees aAct 2000

who decides express and implied terms?

express - settlor

implied - equity / statutes

Name 3 facts about bare trust

known as nominee arrangements

not trusts for IT and Inheritance tax

settlor creates trust without imposing active duties

name 2 facts about int in possession trust

more than one beneficiary at a time can enjoy

exists where beneficiary has immediate entitlement to net income

name diff types of interests in possession

life interest

interest pur autre vie

fixed interest

what sort of interest does a remainderman have?

reversionary

diff between absolute and contingent reversionary interest

absolute - interest is vested so will take property at end of int in possession

contingent - has to satisfy a condition before interest vests

when a trust is settled the legal and equitable ownership is divided between the …

trustees and beneficiaries repsectively