Topics 5-10 Flashcards
What are trusts in a legal view? Are they entities or not? What are they?
- They are not, they are relationships
What are the three fundamental parties involved in the trust?
- Beneficiary
- Trustee
- Beneficiary
What are the 3 required elements for a trust?
1) Intention - must be sufficiant intention either via a will etc - hope is insufiicient
2) Subject Matter - Property is designated clarly
3) Objects - Beneficiaries
Can perpetual trusts exist?
No. Either life linked or fixed term of max 80 years.
Name 4 motivations for trust creation
- Creditor proteciton
- Relationship property protection
- Family wealth management
- Privacy
Explain the relationship of asset ownership between the beneficiary and trustees of the trust
It is one of asset ownership and management for the beneficary benefit.
What are the two main categories of trustee powers
1) administrative
2) distributive
Name some trustee duties
1) Acti in honesty and good faith for beneficiary
2) Act in terms of trust deed
3) Not exercise any power for trustees own benefet
4) No conflict of interest
5) Act unamiously with other trustees
6) Non-delegation
7) Invest prudecently
What is the key heart of most trusts in the form of a document?
Trust Deed
What are the main types of beneficary interests?
Life, remaider {after trust], vested, contingent, discreitoniary
What is the main caveat/consideration with a beneficaries right to request trust documents?
The trustees must consider the interests of all other beneficaries and potential conflicts
What are some of the ways you can make claims on trust property
S44 S44C Trust Act AND Family Proceedings Act - constructive trust
Prenups - are they indefeasible
No - if pre-existing to trust formation and/or would result in a serious miscarriage of justice
