Introduction Flashcards
What sort of title do the trustees have to property under a trust?
Legal title
What sort of title do beneficiaries have to property under a trust?
Equitable title
What is an express trust?
Trusts that are created by the express intention of the creator of the trust (settlor)
What is an inter vivos trust?
A trust created during S’s lifetime by declaring themselves as trustee or transferring property to one or more trustees
What is a testamentary trust?
A trust that may be created in testator’s will
What is an express trust and what are the three types?
A trust created for the benefit of certain ascertainable persons
1. Fixed
2. Discretionary
3. Purpose
What is a fixed trust?
A trust where the interests of Bs are defined by S
e.g. “To my children in equal shares”
What is a discretionary trust?
A trust where the trustee is given discretion in how to distribute trust property, usually among members of an identifiable class
e.g. “For my children in such shares as T shall decide in his absolute discretion”
What is a purpose trust?
A trust set up for a purpose rather than people
e.g. to maintain a pet cat
What is a charitable trust?
A type of purpose trust which carries a charitable purpose for the benefit of an indefinite class of people
When will a trust be implied?
In equity - S has not expressed a desire to create a trust, but one is presumed in order to achieve an equitable outcome
What are the two main types of implied trusts?
- Resulting trust
- Constructive trust
What is a resulting trust?
A trust that is imposed by law which returns the beneficial ownership in the trust property back to the settlor
What are three situations in which a resulting trust will arise?
- Interest under an express trust fails
- Express trust fails to exhaust the beneficial interest
- A makes a voluntary transfer or purchase in the name of B
What is a constructive trust?
A trust imposed by equity where it would be unconscionable for A who holds an asset to deny the beneficial interest of B in that asset
