Equity definitions

Question 1

what is a trust?

Answer 1

a rel which arises where 1 person or more (the trustee(s)) is/are compelled in equity to hold property/assets for the benefit of another or others (the beneficiary(s)) or for a purpose permitted by law.

Question 2

how is a trust established?

Answer 2

A trust is established by a Settlor inter vivos or by a Testator by his Will’.

Question 3

what is a trustee?

Answer 3

• HOLDS LEGAL TITLE holds legal title to property for another person, called a “beneficiary.” If you have been appointed thetrusteeof a trust, this is a strong vote of confidence in your judgment and probity.-legal owner of the property/assets.

Question 4

what is a beneficiary?

Answer 4

• PERSON ENTITLED TO BENEFIT the person or persons who are entitled to the benefit of any trust arrangement. … It is also possible to have trusts for unborn children, although the trusts must vest within the applicable perpetuity period.-are the equitable owners of the assets.

Question 5

what is a legal owner?

Answer 5

ownership thelegalrelation between a person (individual, group, corporation, or government) and an object. The object can be furniture, or a creature oflaw such as a patent, copyright, or annuity; it may be movable, such as an animal, or immovable, such as land.legal title= actual ownerhsip of land

Question 6

what is an equitable owner?

Answer 6

“equitabletitle”- a person’s right to obtain fullownership of a property or property interest. This is often contrasted with or used in conjunction with the term “legal title.” the right to require the legal title- have an equitable interest

Question 7

what is legal adminstrative powers?

Answer 7

to implement theirpower sand duties in the form of rules, regulations, orders, and decisions. – legally delegate

Question 8

what is economic ownership?

Answer 8

Legalownershipof an asset means that the legal person or individual (“Person”) claiming legalownershipis regarded to be the legalownerunder the (civil) laws of the country in which the Person and/or the asset is located. … This risk transfer is a transfer of (part of the)economic ownership.

Question 9

what is a life tenant interest?

Answer 9

Life tenant interest- trust that is established to provide a beneficiary with the right to receive the income (after expenses) from the trust. The beneficiary is known as the life tenant. This right is usually given for their lifetime. On their death the trust fund is passed to the other named beneficiaries, known as the ‘residuary beneficiaries’.

Question 10

what is a beneficiary known as in life tenant interest?

Answer 10

The beneficiary is known as the life tenant. This right is usually given for their lifetime. On their death the trust fund is passed to the other named beneficiaries, known as the ‘residuary beneficiaries’.

Question 11

what is a discretionary trust?

Answer 11

the beneficiaries do not have a fixed entitlement or interest in thetrustfunds. The trustee has the discretion to determine which of the beneficiaries are to receive the capital and income of thetrustand how much each beneficiary is to receive.

Question 12

what is a settlor?

Answer 12

a person who makes a settlement, especially of property in establishing a trust.

Question 13

what is a fixed interest trust?

Answer 13

He or she cannot change the beneficiaries or the benefits they are set to receive. The most common type offixed interest trustis a lifeinterest trust, under the terms of which one individual will have a right to all of thetrust’sincome during his or her lifetime.

Question 14

what is a capital sum?

Answer 14

a lump sum of money payable to an insured person or paid as an initial fee or investment.

Question 15

what is a remainder man?

Answer 15

a person who inherits or is entitled to inherit property upon the termination of the estate of the former owner. Aremaindermanholds an interest in the remainder and will become its possessor at some future time.

Question 16

what is a life tenant?

Answer 16

lifeestate is the ownership of land for the duration of a person’slife. In legal terms it is an estate in real property that ends at death when ownership of the property may revert to the original owner, or it may pass to another person.

Question 17

what is a legal paper owner and what are real owners?

Answer 17

Legal paper owners – propertyReal owners – in equity

Question 18

what are express trusts?

Answer 18

Self declaration of trust to b and An express trust can arise in various ways,e.g:

Question 19

what are various ways an express trust arises?

Answer 19

(i) Where S the owner of Blackacre declares himself trustee of the property for B (‘self-declaration of trusteeship’);(ii) Where S, owner of Blackacre conveys it to Z ‘on trust’ for B;

Question 20

what is a resulting trust?

Answer 20

ben interest returns back to settlor/testator

Question 21

what is an automatic resulting trust?

Answer 21

If there is a ‘gap’ in the beneficial ownership, (‘equity abhors a vacuum’) and the equitable interest results back to the Settlor/TestatorEither gap/ trust fails/surplus of funds after pt

Question 22

what is beneficial ownership?

Answer 22

Beneficial ownership- Beneficial owneris a legal term where specific property rights (“use and title”) in equity belong to a person even though legal title of the property belongs to another person – so basically legal title and eq title – trustee and beneficiary

Question 23

what is presumed resulting trust?

Answer 23

Where property is purchased in the name of another, there is a presumption that the then legal owner holds that property on trust for the man who advanced the purchase money. Equity respects ‘the solid tug/input of money’, Dyer v Dyer (1789), Re Vinagradoff [1935].

Question 24

what is a constructive trust?

Answer 24

A Constructive trust of property can be imposed by a court wherever ‘justice and good conscience require it-A party knowingly receives trust property or is an accessory who dishonestly facilitates a trustee’s breach of trust.

Question 25

what is a fidicary?

Answer 25

involving trust, especially with regard to the relationship between a trustee and a beneficiary.

Question 26

what is compensatory liability?

Answer 26

CompensatoryDamages’ Money awarded to a plaintiff to compensate for damages, injury, or another incurred loss.Compensatorydamages are awarded in civil court cases where loss has occurred as a result of the negligence or unlawful conduct of another party.

Question 27

what is trust property?

Answer 27

Assets that have been placed into a fiduciary relationship between a trustor and trustee for a beneficiary.Trust propertymay include any type of asset, such as cash, securities, real estate or life insurance policies. Also be called “trustassets”, “principal” or “trustcorpus”

Question 28

what is an accessory?

Answer 28

someone who gives assistance to the perpetrator of a crime without taking part in it.

Question 29

what is intestate?

Answer 29

Intestate- Ifyoudiewithout a will, it means you have died “intestate.” When thishappens, theintestacylaws of the state where you reside will determine how your property is distributed upon your death. This includes any bank accounts, securities, real estate, and other assets you own at the time of death.

Question 30

what is personal representatives?

Answer 30

personal representatives - apersonal representativeor legalpersonal representativeis a person appointed by a court to administer the estate of another person. Some states have now adopted states that replace the term “executor” with “personal representative” so the terms are often used interchangeably. An administrator or administratrix is the person appointed by the probate court to administer the estate of a person who has died without a will (intestate).

Question 31

what is a real property?

Answer 31

Real property- property consisting of land or buildings.personal property - Tangible personal property refers to any type of property that can generally be moved (i.e., it is not attached to real property orland), touched or felt. These generally include items such asfurniture,clothing,jewelry,art, writings, orhousehold goods.