Trusts

Question 1

What is trust ?

Answer 1

PENNER : the idea of property in law 1997
A trust exist when a particular fund of property is held by a legal owner ‘on trust’ for a cestui que trust or beneficiary, which means roughly the following : the legal owner has all the legal powers to deal with the trust property, but he must do so entirely for the benefit of the cestui, who is said to have the benefit or enjoyment of the property.

cestui que (beneficiary)

Question 2

Element of trust :

Answer 2

Legal owner of property :
Settlor/Testator

Property : being held on trust

Trustee : The person who holds the property on trust for the benefit of beneficiary (have legal ownership, but they have obligations and duties to the beneficiary in equity)

Beneficiaries; the person the property is held on trust for

Question 3

Nature of trust : 2 elements

Answer 3

1. separation of Ligue 1 equitable ownership in the property in question.
   (without equitable interest there is no trust)
   Westdeutsche v Islington 1996
2. separation of the management and the benefit of property placed on trust.

Question 4

Nature of trust

Answer 4

Settlor
(transfer of legal title)
Trustee
(equitable obligation to the beneficiary)
Beneficiary
(settlor declares the property is being held on trust for the beneficiary)

Question 5

2 ways to declare trust of their property :

Answer 5

Declaration by transfer :
legal owner will transfer the property to the trustee who will then hold the property for the benefit of another, this other being the beneficiary

Self declaration of trust :
legal owner to declare themselves as a trustee who will hold the property on trust for beneficiary

Question 6

Types of trust :

Answer 6

Express trust
Implied trust