Trust 2 - Creation express trust Flashcards
1
Q
What are the 2 essential rules for trusts?
A
- Perpetuity: trust can’t last longer than 125 years
- Rule in S v V: beneficiaries can collapse a trust by trustees transferring legal title to them
2
Q
What two types of trusts arise by operation of law?
A
- Resulting - formalities of intended relationship not followed
- Constructive - result of wrong doing
3
Q
What are bare trusts?
A
Simply holding legal title
4
Q
What are the 2 methods of the transferor creating an express trust?
A
- Self-declaration of trust: settlor becomes trustee, retaining legal title, holding their assets on trust for beneficiaries
- Transfer on trust: settlor transfer legal title to 3rd party who holds on trust for beneficiaries
5
Q
What are the 4 requirements to create an express trust?
A
- 3 Certainties
- certainty of intention (creation)
- certainty of subject matter (assets)
- certainty of objects (bens) - Beneficiary Principles (must be identifiable beneficiaries save for exceptions)
- Perpetuity Rules/Formalities (declaration & constitution of trust)
- Registration