Creation abd Requirements of Express Trusts

Question 1

What is a settlor?

Answer 1

The person who creates the trust

Question 2

What is a self-declaration of trust?

Answer 2

Once the trust is created, the settlor remains legal owner of the asset but divests their beneficial interest. Settlor becomes trustee

Question 3

What is a transfer on trust?

Answer 3

The settlor transfers the. Property to a third party and to manifest the intention that the third party should hold the property on trust for the beneficiary

Question 4

What happens to the legal and equitable interests in the property when a settlor does a transfer on trust for a third party?

Answer 4

The settlor parts with both the legal and equitable titles, settlor no longer has any interest in the property at all

Question 5

What happens to the legal and equitable titles when the settlor does a transfer on trust for themselves?

Answer 5

The legal title goes to the third party trustee, and the equitable interest goes to the settlor

Question 6

What are the three certainties that are necessary to create a valid express trust?

Answer 6

Certainty of intention, certainty of subject matter, certainty of objects

Question 7

What is the beneficiary principle?

Answer 7

It requires the objects of a trust to be legal persons

Question 8

What are the further formalities required for an inter vivos self declaration of trust?

Answer 8

It is only necessary to consider whether there are any specific formalities required for the declaration of trust

Question 9

What further formalities are required for an inter vivos transfer on trust?

Answer 9

The constitution of the trust - rules relating to the valid transfer of legal title to the trustee