1. Basics

Question 1

What is an Express Trust v an Implied Trust?

Answer 1

An Express Trust is SPECIFICALLY Created with an INTENTION to either benefit individuals or achieve a purpose

A Implied trust arrises as a matter of law

Question 2

What are the 2 express trusts?

Answer 2

Resulting Trusts - Trust is implied as its PERSUMED the settlor intended a trust (such as contributing to purchase price)

Constructive trust - IMPOSED where courts feel it would be UNCOSCIOSABLE to deny another person an interest in the property (ie contributing to mortgage payments or construction ) (ie to achieve a fair result)

Question 3

What is the diffrence between an Inter-Vivos Trust and Testamentary Trust?

Answer 3

Inter-Vios Trust - Takes effect during the settlers life time

Testamentary Trust - Takes effect on the Settlors death

Question 4

What decleration of trust and transfer of title does an Inter Vivos Trust require?

Answer 4

Decleartion of Trust - Valid Decleration of trust (need not be in writing)

Transfer of Title - Transfers Title to Trustees

Question 5

What decleration of Trust and Transfer of Title does an Testamentary trust require?

Answer 5

Decleration of Trust - Valid decleration of trust, THAT COMPLIES WITH S.9 WILLS ACT

Transfer of Title - Directon in the will to transfer the property to trustees

Question 6

What is the Diffrence between a fixed trust and a Discretionary Trust?

Answer 6

Fixed Trust - The Settlor FIXES the Beneficaireis and their shares

Discretionary Trust - The Trustee chooses who the beneficiaries are, out of a class of people, and how much they get.

No Beneficiary under the will has any property rights until trustee exercises his direction

Question 7

What happens if a Inter Vivos Trust Fails?

What happes if a Testamentary Trust Fails?

Answer 7

1. Equitable interest goes to the Settalor
2. Equitable Interest goes to the Residuary Benificary under the terms of the will