Implied Trusts - Understanding Beneficial Ownership

Question 1

A trust splits the ownership of the property into what?

Answer 1

Trustee - Legal ownership, has the legal title (if registered, LRA 2002; if unregistered, title deeds)

Beneficiary - beneficial interest, equitable interest in the property, generally entitled to a share in the property value (e.g. on sale)

Question 2

Can the same person be the trustee and the beneficiary?

Answer 2

Yes, as long as there is also a second beneficiary

You cannot hold property on trust for yourself alone

Question 3

What are express trusts?

Answer 3

Main form of trust
Created intentionally by the settlor (if created by someone alive) or the testator (if the trust is created by someone in a will)

Settlor of a trust may either declare that they hold the property on trust for somebody else or that they intend to transfer property to somebody else to hold on trust for another

(private + charitable)

Question 4

What are implied trusts?

Answer 4

They arise by operation of law
The facts are such that the law deemed it appropriate to adjust the beneficial interest in a property

= not solely a Q of ‘fairness/ justice’
= based on established tests + requirements