Trust Definitions

Question 1

Implied Trusts

Answer 1

Resulting and constructive trusts.

Question 2

Constructive Trusts

Answer 2

Legal imposition of a trust in certain, recognised, circumstances.

Question 3

Resulting Trusts

Answer 3

Automatic or presumed resulting trusts. Where there is a gap in the beneficial interest or not enough evidence to determine what the terms of the transaction are.

Question 4

Bare trusts

Answer 4

Where property is held for the beneficiary absolutely.

Question 5

Fixed Trusts

Answer 5

The beneficiaries and the extent of their interests are fixed.

Question 6

Discretionary Trusts

Answer 6

Trustees have discretion as to who will benefit and the quantum of their interest.

Question 7

Powers of Appointment

Answer 7

Gives holder of the power the power to dispense property to individuals, it does not have to be exercised but where it is there is a fiduciary duty.

Question 8

Saunders v Vautier

Answer 8

Where beneficiaries are in agreement and are of full age and mental capacity, they may bring an end to a trust where property is vested on their behalf absolutely.

Question 9

Gartside v IRC

Answer 9

Beneficiaries under a discretionary trust may bring an end to the trust if they are in agreement.

Question 10

Express Trusts

Answer 10

Depends on express intention of settlor, once property is conveyed to trustees settlor no longer has an interest.