Introduction to Trusts Flashcards
What is an equitable maxim?
They are statements that embody the core principles of equity
What are two important equitable maxims?
-‘ He who comes to equity must come with clean hands’
-‘ equity will not assist a volunteer’
What is a trust?
A trust is an arrangement where a trustee holds property for the benefit of another
What three things does a trust involve?
- a duty imposed on a trustee
- to deal with property over which the trustee has control
- for the benefit of beneficiaries who can enforce the duty
Who is a settlor?
The person that creates the trust.
They select the trustees, beneficiaries and the property that will initially be held in the trust and lay down the rules, (the declaration of trust).
Who is the trustee?
The trustee is the person chosen to hold the trust property for the benefit of the beneficiaries.
Who are the beneficiaries of a trust?
The people who benefit from a trust.
How does the ownership of a trust work?
LEGAL title goes to the TRUSTEE
EQUITABLE title goes to the BENEFICIARY
What is an express trust?
A trust that the settlor expressly intends to create
What is an implied trust?
Implied trusts come into existence because the law says they should
What is a resulting trust?
A resulting trust is implied in situations where it is presumed that the settlor would have intended such a trust, if they had thought about it.
What is a constructive trust?
A constructive trust is implied in order to achieve a fair result between the parties involved.
