Certainty of Object Flashcards
What is a fixed trust?
Objects have their own fixed entitlement and can compel the trustee to distribute their asset
What is a discretionary trust?
Trustee has discretion
What is a bare mere power?
No fiduciary responsibility at all; don’t need to consider exercising it; no enforcement right for the objects (bies)
What is a fiduciary mere power?
Fiduciary responsibility; must consider exercising it; objects have right to compel fiduciary to think about exercising the
How can you tell the difference between a trust and a power?
Check what happens in case of default
What are the main differences between a trust and a power?
Trust: obligation and comes with duties and enforcement
Power: the choice to do something
Note: these can be mixed
What is the test for a fixed trust?
Complete list
What is the test for a discretionary trust?
Is or is not test
Explain the “is or is not” test and its complexity
Discretionary trust test
