Beneficiaries

Question 1

How does a successive interest fixed interest trust work?

Answer 1

The beneficiary gets a life interest in the property/land and then the second beneficiary gets a remainder interest. This can mean they get any income from the capital.

Question 2

What is a discretionary trust?

Answer 2

This is a type of trust that means that each beneficiary could benefit in different amounts.

Question 3

What is the different between vested and contingent interest?

Answer 3

A vested interest: An unconditional right.

A contingent right: a conditional right

Question 4

What is the Saunders v Vautier rule?

Answer 4

This is the rule that a sole adult beneficiary of sound mind, with a vested interest in the trust property is entitled to direct the trustee to transfer legal title to them, thereby brining the trust to an end early.