Beneficial Entitlement

Question 1

What constitutes “absolute interest” under a trust?

Answer 1

Interest in capital

Question 2

What constitutes “limited interest” under a trust?

Answer 2

Interest in income only

Question 3

What is a vested interest?

Answer 3

Beneficiary does not have to satisfy any conditions in order to become entitled to trust property

Question 4

What is a contingent interest?

Answer 4

Beneficiary has to satisfy any conditions in order to become entitled to trust property

Question 5

What is a successive interest trust?

Answer 5

Trust used to distribute property over successive generations

Question 6

What is the rule in Saunders v Vautier?

Answer 6

If a trust is for a sole, adult, mentally capable beneficiary, they can bring the trust to an end at any point

Question 7

What is the extended rule in Saunders v Vautier?

Answer 7

When there is more than one beneficiary, trust can be ended so long as all the beneficiaries are in existence and ascertained, over 18 with mental capacity, and all agree