Subject matter Flashcards
Express Trusts
Expressly set up by the settlor
Require the 3 Certainties
Formalities
Constutution
Implied Trusts
Implied by the conduct of the parties
EXEMPT from formalities
Resulting Trust
When it results back to the settlor
Constructive
Imposed to prevent unconscionable conduct
Imposed by the courts
Transfer on Trust
Declaration + constitution
3 different parties
Self- declaration of trust
2 different parties
No constitution
Successive interest trust
Life tenant - income
Remainder - capital
Vested
Unconditional right to benefit
Contingent
Right that depends on the occurance of an uncertain event
What is the Saunders v Vautier rule?
Collapsing a trust
Fixed trust
Settlor determines the benefit and size of each share
Discretionary trust
Settlor defines the class and directs T to choose shares
Power of appointment
Not compellable
Donor / Donee / Objects
3 Certainties
Certainty of Intention Certainty of Subject Matter - trust property - beneficial entitlements Certainty of Objects
Different words for certainty of intention
Precatory
+
Imperative
What is the test for a Fixed Trust
Closed List Test
- conceptual certainty
- evidential certainty
What is the test for a Discretionary Trust
Is/Is not test
Trust must be conceptually certain - capable of objective definition
What must a Testamentary trust comply with?
Section 9 Wills Act 1837
- writing and signed by testator
- signature acknolwedged by 2 witnesses
- signed by witnesses
Do trusts of land need to comply with formalities?
YES LPA 1925 S53 1b Evidential requirement of writing If not - unenforceable
Do dispositions of existing equitable interests need to comply with formalities?
YES
MUST be in writing.
If not - void
Is there an exception to s53 1b?
Yes
Implied Trusts
s53 2 LPA
