General on Trusts Flashcards
Claims against a trustee
in personam & rem
Saunders v Vautier
The exception to the rule that beneficiaries only have a right in personam against the trustees, they can exercise a proprietary right to property provided that they collectively have all of the equitable interest and they are of legal age
Claims against third party with knowledge
in personam and in rem
Claims against 3rd party who’s an innocent volunteer
In rem (in personam?)
Claims against a 3rd party who fraudulently assists in or induces a breach of trust
in personam
Bona fide purchaser
no claim
Debt
Unless there is a security interest, should a debtor become insolvent then all the creditors will be on the same level re priority - Bs are different, providing they have a equitable prop. interest then they will be able to claim those assets in priority - nb potential creditor-debtor relationship between B and T - cf. Lenham Bros.
Gift
Typically involves donor giving to donee with no obligation whereas a trust is split between the trustee (no beneficial interest) and the B (not received property absolutely)
Intestacy
Property is passed to executors absolutely but they have a fiduciary duty to ensure that it is transferred to those entitled under the will, where there is no will the person dies intestate and the court appoints administrators - Bs under a will have neither a legal or equitable interest until discharged from executors
Powers - fixed trust
The duty to distribute property must be discharged, if not the court eill ensure it
Powers - discretionary trust - Breadner
Can choose who is to benefit but the power to discharge must be exercised ‘trust power’ - if fail to do so will be exercised by court
Mere power
Given to the trustee sometimes in a personal capacity or to people who not trustees - not even obliged to consider it
