Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Trusts > Express Trusts > Flashcards

Express Trusts Flashcards

1
Q

How to create a trust

A

Declare yourself a trustee or transfer property to trustee on trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What kind of property can be trust property

A

Anything capable of being owned can be trust property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When is a trust constituted and enforceable

A

Once property is transferred to trustee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Can a settlor create a trust if they only have an equitable interest

A

Yes can still assign it so interest is held on trust not property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is T becomes bankrupt

A

B can claim trust property in advance of creditors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who enforces public trusts

A

Att-Gen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How long is Perpetuity rule

A

125 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What happens when perpetuity rule breached

A

Trust instrument must provide for it to vest within the period or trust becomes void

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Rule against accumulations

A

No long Applies

For trusts created pre 2010 the trust cannot be accumulated for more than 21 years or the minority of a person in being

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Bona fide purchaser for value without notice

A

Takes free of equitable interests
Equity’s darling.
Bona fide= good faith

Unless purchaser has notice or ought reasonably to have acquired notice of the equitable interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How to assign an equitable interest

A

Signed writing
Declare you hold it for another (sub trust)
Or
Declare T holds it for another

Must be whole of interest not part of it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Formalities for a trust of personal property

A

No formalities required just need capacity and intention to create a trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Formalities for trust in a will

A

Wills Acts s9 - writing, signed witnessed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Trust for land formalities

A

Writing and signed
Doesn’t need to be a deed
Also transfer legal title under LPA s52

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Formalities for trust of copy write

A

Writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Formalities for transfer of shares

A

Form of transfer and stock transfer form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Knight v Knight 3 certainties

A

subject, object and intention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Certainty of intention

A

Intention to create a trust must be clear
consider all circumstances, whole trust and can imply from behaviour
imperative words - trust
hope / wish - not a trust, a gift.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What if there is no certainty of intention

A

Take absolutely as gift

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Certainty of subject matter

A

Property must be easily identifiable
cannot be part of bulk unless shares.
evidential uncertainty won’t cause it to fail (cannot locate it)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What if there is no certainty of subject matter

A

trust is void

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

certainty of objects

A 
clear who are the Bs. 
Fixed trusts - class ascertainability test (IRC v Broadway) - T must be able to draw up a complete list of Bs. 
Discretionary trusts - individual ascertainability test (Mcphail v Doulton) - T must be able to say if any one person falls within the class. Need conceptual certainty and administrative workability or will fail.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Conceptual certainty

A

clearly defined

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

administrative workability

A

not too wide a class so that it would be practically impossible to establish Bs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What if there is no certainty of objects

A

Goes back to S on RT or if S has died the residuary B of the will.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

S tries to create trust but it goes wrong and then S dies with no will. What happens to the property

A

It passes under intestate rules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What property can S create a trust over

A

Property S owns or has an equitable interest in. Not future interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Where there is a collection of things can S create a trust over just some of the group

A

Only if they are all identical.
Eg intangible property
Otherwise it lacks certainty of subject matter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

If S transfers property to T, some of which is for T absolutely and some of which is for T to hold on trust but there is no certainty of subject matter what happens?

A

T will take it all absolutely

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

If S transfers property to T all of which is to be held on trust but there is no certainty of subject matter what happens to the property

A

It is held by T on RT for S

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are predatory words

A

These express a hope of expectation and indicate a gift

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What sort of words are needed for certainty of intention

A

Mandatory or obligatory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What are the 2 aspects of certainty of subject matter

A

The trust property must be described with certainty

The settlor must define the Bs interest with certainty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is the rule against perpetuities called when dealing with trusts for individuals

A

Rule against remoteness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the rule against remoteness

A

To be valid the trust must vest ( become unconditional ) within perpetuity period (125 years of created after April 2010)

36
Q

What are the 2 steps to make a trust

A

Declaration

Constitution (transfer)

37
Q

How to constitute a trust if S is also the T

A

Self constitute so no need to transfer the property

38
Q

How to constitute a trust of chattels or money

A

Title passes on delivery

39
Q

How to constitute a trust of land

A

Signed and written

If registered land use deed TR1 and give it to T to send to land registry (or send directly)

40
Q

How to constitute a trust of shares

A

CREST system if public quoted shares

Or for all other shares complete share transfer form and certificate to T then to company ( or to company directly)

41
Q

Can S be forced to constitute a trust

A

No- equity won’t assist a volunteer
Unless S did everything they could to transfer it but 3rd party didn’t complete it
If S is to be joint T with a 3rd party it would be unconscionable not to transfer it so S cannot back out and must constitute it

42
Q

Difference between administrator and executor

A

Executor - will

Administrator - no will

43
Q

How do administrators and executors get legal title

A

Through grant of representation

44
Q

Capital return

A

Value of property

45
Q

Capital gains

A

When the value of the item goes up

46
Q

Income return

A

Money (or monetary equivalent) received on a regular basis deriving from property

47
Q

Rule in strong v bird

A

If S wanted to create a trust with T as trustee but died before they could constitute it and T is also executor or administrator this will create trust if Ss intention lasted until their death

48
Q

Test for certainty of objects for fixed trusts

A

Complete list of Bs
Evidential certainty
Conceptual certainty

49
Q

Test for certainty of objects for discretionary trust

A 
Given postulant test 
Can it be said with certainty that any given individual is or isn’t in the class 
Conceptual certainty
Administrative workability 
Cannot be Capricious
50
Q

What is capricious

A

No logical basis on which T can distribute property

51
Q

What is conceptual certainty

A

Is the description of the class clear and objective

52
Q

What is evidential certainty

A

Do we have the evidence to identify all the Bs that will benefit under the trust

53
Q

Is capriciousness an issue for fixed trusts

A

No

54
Q

Is evidential certainty an issue for discretionary trusts

A

No

55
Q

What if there is no certainty of objects, no administrative workability or it is capricious

A

There will be a RT in favour of S

56
Q

Beneficiary principle

A

To be valid a trust must be for the benefit of individuals

57
Q

Vested interest

A

B exists and doesn’t have to satisfy any conditions. Their interest is unconditional

58
Q

Contingent interest

A

Conditional on a future event that may not happen or B is not yet in existence

59
Q

What happens to a contingent interest when B satisfies the condition

A

It becomes a vested interest

60
Q

If B dies before satisfying the conditions of a contingent trust what happens to the property

A

It goes back to S unless there is a substitution clause

61
Q

What is a substitution clause

A

Identifies who will take the property in substitution should the primary trust fail

62
Q

Do Bs under a discretionary trust have a beneficial interest

A

They have no beneficial entitlement until T exercises discretion to distribute. Until then they are objects not Bs
Once T decides to distribute they get a vested interest

63
Q

Saunders v Vautier

A 
B can end trust, having it transferred to B or to other Ts if:
All Bs are in existence and ascertained
All 18+
All agree
And 
All absolutely entitled between them
64
Q

What if B dies before the property in a vested trust is transferred to them

A

The property belongs to Bs estate

65
Q

What if the B of a vested trust is under 18

A

T will hold the property on trust until B is 18

66
Q

What if the B of a vested trust dies before they reach 18

A

The property will form part of their estate

67
Q

What if the B of a vested trust is over 18

A

T holds it on bare trust until transferred

68
Q

What type of interest does the remainderman have

A

A vested interest because it is not conditional (death inevitable) even though they cannot have it till life tenant dies. Vested interest is postponed

69
Q

What if remainderman dies before life tenant

A

It would not fail but would be transferred to estate of remainderman after death of life tenant

70
Q

What type of interest does a life tenant have

A

Life interest

71
Q

Can a remainderman’s interest be conditional

A

Yes it would be a successive interest trust

72
Q

What is a successive interest trust

A

When a remainderman has a contingent interest

73
Q

Other name for successive interest trust

A

Life interest trust

74
Q

Bare trust

A

Trust for a sole adult, mentally capable with a vested interest. B is absolutely entitled

75
Q

What does a T of a bare trust have to do

A

Must handle property as B dictates

B can end trust at any time or replace Ts

76
Q

Beneficiary principle

A

Need a B to enforce the trust

77
Q

Which trusts are void due to violating the beneficiary principle

A

Non charitable purpose trusts

78
Q

How long is the perpetuity period (rule against inalienability of trust capital) for non charitable purpose trusts

A

21 years

79
Q

What is the perpetuity period called when dealing with non charitable purpose trusts

A

Rule against inalienability of trust capital

80
Q

Which rules are charitable trusts exempt from

A

Beneficiary principle and rule against inalienability of trust capital

81
Q

When are non charitable purpose trusts NOT in violation of the rule against inalienability of trust capital

A

The trust states it is to last no more than 21 years (as long as the law allows will suffice)
Or
T may spend all the trust capital on the purposes thereby ending the trust at any time (suffices if nothing puts limit on when it can be done/spent)

82
Q

3 aspects of a charitable trust

A

Charitable purpose
Sufficient public benefit
Exclusively charitable

83
Q

What are trusts of imperfect obligation

A

Trusts to care for animals, maintain graves and tombs.

84
Q

Do trusts of imperfect obligation breach the beneficiary principle

A

No because if T doesn’t apply the money for purpose S or residue B can go to court to claim the money for themselves

85
Q

Do trusts of imperfect obligations need to comply with the rule against inalienability of trust capital

A

Yes

86
Q

What is an Re Denely Trust

A

Identified people who will benefit from purpose and they have standing to enforce Ts duties so court can enforce trust

87
Q

Requirements for a valid re Denley trust

A

The purpose of the trust is sufficiently clear and gives rise to a sufficiently tangible benefit
The persons who will benefit from purpose must be ascertainable ( given postulant test so must be conceptually certain)
And
Must comply with rule against inalienability of trust capital (21 years or any time)

Trusts (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions