The Different Types of Trust

Question 1

What is an express trust?

Answer 1

Where someone is expressly setting out to achieve a trust.

Question 2

What are the different kinds of express trusts?

Answer 2

Fixed trust
Discretionary trust
Bare trust

Question 3

What may a beneficiary’s interest in a fixed trust be described as?

Answer 3

1. Vested - UC
2. Contingent
3. In possession - now
4. In remainder - later
5. Absolute - capital and income
6. Limited - just income.

Question 4

What are discretionary trusts?

Answer 4

Trusts where the trustee has the benefit of choosing whether the B is entitled to the trust.

Question 5

What is a bare trust?

Answer 5

Where someone holds an asset in their name, purely as a nominee for another individual.
E.g., banks