Equity and Trusts

Click to edit Master subtitle style Presenter Name

Presentation Date
Company Logo

A trust is a relationship where a settlor is

4/29/12

This person (or persons) is/are

4/29/12

The trustee holds property

4/29/12

The trustee must act in the

4/29/12

4/29/12

Once the trust is set up, the settlor no longer has any right in the property. The trustee has a legal interest, and the beneficiary an

Beneficial Interests

Contingent Vested In Possession In Remainder Absolute Limited

A condition is available now before beneficiary is The interestmust be satisfied (unconditional) entitled

Enjoying the benefit of the trust at present Will receive the trust fund after beneficiaries death

The interest amounts to the capital of the trust The interest is limited to the income from the trust

4/29/12

A trust may be ended provided that:

All beneficiaries are of legal age and sound mind (sui juris) Are Saunders that the trust should be ended. in agreement v Vautier [1841] 4 Beav

115 Company Logo

4/29/12

Property
Personal Property Real Property

Chattels Land Freehold (jewellery, personal items) Choses in land is not included. Leasehold action (debts, life assurances, copyrights) Leasehold Land

4/29/12

Transfer of Property

4/29/12

Milroy v Lord [1862] 4 De

Gifts, Trusts and Wills

Company Logo

4/29/12

Gifts, Trusts and Wills in Context

Inheritance tax applies to all property inherited over a value of 325,000

The charge above the nil rate band is 40%

Gifts are Potential Exempt Transfers (PETs) and if the donor survives more than 7 years after the gift was made there is no inheritance tax.

Creation of a lifetime trust is subject to a 20% inheritance tax if the 4/29/12

Gifts
To make a valid gift, three conditions must be met:The donor must have the necesssary mental capacity to make the gift The donor must have the intention to make the gift (expressed in words or conduct) The donor must ensure there is certainty of subject matter and objects

4/29/12

Validity of Gifts

A gift may fail if one of the conditions in Milroy v Lord has not been met Turner LJ made it clear that equity will not rescue improperly made gifts by creating a trust The Every Effort test applies, it requires that the donor has done everything in his power to transfer the property beyond recall. Re Rose [1952] Ch 499
4/29/12

Transfer of Shares

Outside CREST

The CREST System Computerise d PLCs only Electronicall y recorded only No need for 4/29/12 STF

Share Certificates in paper format All Ltd companies, some PLCs Shareholder is

The Rule in Strong v Bird

An exception to the rule equity will not perfect and imperfect gift Four conditions must be met:1.

Intended as immediate gift Gift is invalid due to failure of a formality The intention to make the gift must have remained until the death of the donor The donor dies, and the donee is one of the PRs for the donor. The ownership is now vested in the donee and the gift is complete.

2.

3.

4.

4/29/12

Strong v Bird [1874] LR 18 Eq 315

Creation of a Trust

4/29/12

Whos Who
Lead Jim Dee Mavis Doug Contact information Jim@company.com Dee@gcompany.com Mavis@company.com Doug@company.com

4/29/12

Working Toward Mastery

Achieve Mastery
Projects Worked On

Get Experience d Get Familiar

Time Spent 4/29/12

Doing Your Best Work

Working from home Working offsite Technology requirements

4/29/12

Case Study

Jeremy

His first day Mistakes made Successes achieved The moral of the story

4/29/12

Discussion

What we can learn from Jeremy Best practices Take-aways

4/29/12

Summary

Define your challenges

Technological as well as personal

Set realistic expectation

Mastery is not achieved overnight

Keep your eye on the goal

Mentorship programs

4/29/12

Resources

<Intranet site text here> <hyperlink here> <Additional reading material text here> <hyperlink here> This slide deck and related resources: <hyperlink here>
4/29/12

Questions?
Company Logo

4/29/12

Appendix
Company Logo

4/29/12