Trusts Flashcards
What is an interest in possession trust?
Where the beneficiary has the present right to income /enjoyment of the Trust property
Who has the legal ownership of the trust property?
The trustees
What are the 3 certainties required to create a valid trust?
The words used, subject matter, and object of the trust
Which Act governs the appointment of new trustees?
Trustee Act 1925
Who would the life office pay on a death claim on a trust policy?
The trustees
What is a successive trust?
Where a property is held in trust for a succession of interests taking effect one after the other
Who are the legal owners of a trust property?
The trustees
Who are the legal owners of a trust property?
The trustees
What is a discretionary trust?
Where the beneficiary has no specific right to income or capital. Distributions are at the trustees discretion
What are the 3 certainties of a trust?
The words, subject matter and beneficaires
What is a life tenant entitled to?
Income for life only, but not the capital
What is a remainderman entitled to?
The capital, once the life Tennant has died
What is the rule in Saunders v Vautier?
That if all the beneficiary’s are known, there is no possiblibily of further beneficiary’s and they are of full age and capacity, they can direct the trustees to hand the trust property to them and effectively put an end to the trust.
Can an existing policy be placed in a MWPA Trust?
No
What is another name for a bare trust?
An absolute trust
