Introduction

Question 1

What is equity

Answer 1

The purposes of the trust:
1.Mitigate severity of Common Law
2.To provide the victim of the wrong with more options for the remedy

Question 2

What is a trust?

Answer 2

It is an arrangement where a trustee holds property for the benefit of another

Question 3

Express trusts

Answer 3

These are the trusts that the settlor expressly intends to create.

Express trusts that benefit the individuals: the settlor directs that trustees must distribute trust property to individuals. There are various forms of trust: vested, contingent, successive and discretionary

Express trusts to achieve purpose: where a settlor leaves property on trust to achieve a purpose or attain an objective, such as putting money in trust for building of the school.

Question 4

Implied trusts

Answer 4

a) reuslting trust mplied in situations where it is presumed that the settlor would have intended such a trust, if they had thought about it.The are implied by the court in circumstances where the settlor has transferred title to a trustee but failed to identify the beneficiaries, in which case the trust fails, and the beneficial interest will be held by the trustee on resulting trust for the settlor who becomes entitled to the trust assets. A resulting trust may also arise where someone contributes to the purchase price of property, in circumstances which do not suggest gifting, where a resulting trust will be implied in proportion to the size of the contribution.

b) constructive trust is implied in order to achieve a fair result between the parties involved. It is often used where it would be unfair to allow the legal owner to have full enjoyment of the property they hold. It arises where a defendant has acted in a way that is unconscionable and has received or kept property as a result, such that, from the time the act is performed and the person is aware that there is a mistake or dishonesty, the defendant is considered to hold the property on trust, which gives rise to an equitable interest in the property for the rightful owner.

Question 5

When trust can be created

Answer 5

a) during the settlor’s lifetime (inter vivos), or
b) on their death in their will