Express and Implied Trusts

Question 1

what are express trusts?

Answer 1

trusts created with the intention to either benefit individuals or achieve a purpose

Question 2

What are implied trusts?

Answer 2

they come into existence as a matter of law, no express intention to create trust required.

Question 3

What are the types of implied trust?

Answer 3

resulting trusts

constructive trusts

Question 4

what is an inter vivos trust?

Answer 4

trust made in testator’s lifetime

Question 5

what happens if an inter vivo trust fails?

Answer 5

equitable interest will revert back to the settlor if they are still alive

Question 6

What is a testamentary trust?

Answer 6

a trust on death as set out in the will which requires:

declaration of trust complying with s 9 Wills Act

AND

Transfer of title

Question 7

what happens if a testamentary trust fails?

Answer 7

equitable interest will revert to the residuary beneficiary under the terms of the will

Question 8

What is a fixed interest trust?

Answer 8

where beneficiaries and their shares are fixed by the settlor.

the trustee has no discretion as to beneficiaries or their entitlement

Question 9

what is a discretionary trust?

Answer 9

settlor gives trustee discretion to select who:

from class of persons, will receive trust property

AND

in what shares.

Question 10

what is the beneficiaries’ position under a fixed trust?

Answer 10

they have an expectation but no property rights until discretion is exercised in their favour