Beruflich Dokumente
Kultur Dokumente
OF TRUST
UEQ3612 EQUITY & TRUST I
Relationship between Trust and
Equity
The concept of use of land;
Legal ownership;
Equitable ownership;
The Trustee
WHO BECOMES THE LEGAL OWNER OF THE
TRUST PROPERTY FOR THE BENEFIT OF
The Beneficiary
WHO IS THE EQUITABLE OWNER
How a trust may be created I
Intentionally
Will
Charity
Inter vivos trust
How a trust may be created II
By implication
Where A contributes money towards the purchase of
something and does not intend that contribution to be a gift,
when the item is sold, A expects to get a proportionate share
of the proceeds. This is called a resulting trust.
Where A leaves an asset to B in a will, but B dies before A.
The asset results back to As estate. This is also an example
of a resulting trust.
Where A has put him/herself in the position of being a
trustee, the courts will construe him/her as being a trustee.
This is called a constructive trust.
A specific type of constructive trust arises in the context of
the family home where a person will be construed as a
trustee if there is a common intention between the couple
that the house is to be shared and the beneficiary has relied
on that intention to their detriment.
How a trust may be created III
By operation of law
Co-owners of land are trustees Law of Property Act
1925 s34
The person who administers a deceased persons estate
is a trustee Administration of Estates Act 1925 s33.
The relationship of the parties
Settlor-Trustee A person may declare
themselves to be a trustee
Trustee-Beneficiary A person may be a trustee
e.g. of land for the benefit of themselves and
another person
Settlor Beneficiary e.g. a person who transfers
land from sole ownership to joint ownership
Cont.
Formalities:
Certainty of intention;
Certainty of subject matter;
Certainty of object;
Cont.
Certainty of intention:
A) discretionary trust;