Express Trusts 1+2 Flashcards
What is a trust?
A trust is a fiduciary relationship where the trustee legally owns property for the benefit of the beneficiaries. It results in split ownership: the trustee holds the property in law, while the beneficiary holds it in equity
What is a bare trust?
A bare trust is where the trustee holds the property and acts solely based on the beneficiary’s directions, often used for holding property until a beneficiary reaches adulthood
What is a special trust?
A special trust requires the trustee to act under specific terms or exercise discretion, such as making investment decisions or safeguarding property
What are the 4 key elements to set up a valid express trust?
- Settlor: Transfers property
- Trustee: Manages the property
- Beneficiary: Receives the benefit
- Formalities: Trust must be in writing (s.53(1)(b) Law of Property Act 1925)
What are the three certainties required to create a valid express trust?
1) Certainty of intention
2) Certainty of subject matter
3) Certainty of objects
What is certainty of intention?
Certainty of intention means the settlor must have a clear intention to create a binding trust, not just a moral obligation
What was the issue in Singha v Heer [2016]?
The Court of Appeal held that the phrase “on trust” was insufficient to create a binding trust, as it was more of a security arrangement rather than a trust
What are precatory words?
Precatory words express a wish or hope rather than creating a legal obligation. Example: “I hope my wife will take care of the children”
What is certainty of subject matter in a trust?
The trust property must be clearly identifiable, meaning it must be clear which property is part of the trust
What are legal easements?
Legal easements must attach to a freehold or leasehold estate and are created by statute, deed, or long-term use, providing the strongest protection
What are equitable easements?
Equitable easements arise when the formalities for creating a legal easement are incomplete and are enforced under equity, sometimes based on proprietary estoppel
How can easements be created (express + implied)?
Easements can be created:
- Expressly: Through grant or reservation
- Implied: By necessity, common intention, or s.62 of the Law of Property Act 1925
How are easements acquired by prescription?
Easements by prescription are gained through long-term use, either by common law (20+ years) or under the Prescription Act 1832 (40+ years)
What is a profit-à-prendre?
A profit-à-prendre is a right to enter land and extract resources, such as fishing or cutting wood, which can be appurtenant (tied to land) or in gross (independent of land ownership)
