Rights and Interests in a Trust

Question 1

Settlor

Answer 1

The settlor is the person who declares the trust or completes the transfer on trust. If the settlor is the trustee (self-declaration) then they will have a legal interest in the property. If the settlor is not the trustee, they transfer their legal interest in the property to the trustee.

Question 2

Trustee

Answer 2

Trustee has a legal interest (ownership) in the trust property and therefore can deal with the property IN ACCORDANCE with the trust deed. Otherwise, the beneficiaries will have equitable remedies against them for breach of trust.

Question 3

Beneficiary

Answer 3

A beneficiary has an equitable proprietary interest in the trust property. They can enforce obligations of the trustees and have remedies where the trust is mismanaged. They are the true owners of the trust property.