The concept of trust and creation of express trusts

Question 1

What are the two core principles of equity

Answer 1

1) he who comes to equity must come with clean hands
2) Equity will not assist a volunteer.

Question 2

In a trust who holds the legal and beneficial title?

Answer 2

The trustee holds the legal title, equitable or beneficial title goes to beneficiary.

Question 3

What is an express trust?

Answer 3

For individuals to achieve a purpose.

Question 4

What is an implied trust?

Answer 4

A resulting trust (presumed they would have created it) or constructed trust (implied to achieve fair result between parties involved).

Question 5

What is a lifetime trust?

Answer 5

Takes effect during their lifetime, must make A) valid declaration of trust in will and B) ensure property is put into a trust.

Question 6

Difference between a fixed interest trust and discretionary trust?

Answer 6

fixed interest trust leave no discretion to trustee, a discretionary trust does

Question 7

What are the three certainties a declaration of trust must satisfy?

Answer 7

1) Certainty of intention
2) Certainty of subject matter
3) Certainty of object

Question 8

What are the specifics of certainty of intention?

Answer 8

Must be clear they intended to create trust. Settler must have used words that impose a duty on someone to act as a trustee.

Question 9

What are the specifics of certainty of subject-matter?

Answer 9

Must be clear how property is divided. property and beneficiaries defined with certainty.

Question 10

What are the specifics of certainty of objects

Answer 10

Must be clear who beneficiaries are (fixed interest trust requires complete list).

Question 11

What is the every effort test?

Answer 11

When settlor has done everything they can to transfer legal title, It may be regarded as complete. (Beyond recall)

Question 12

What is the rule in [Strong v Bird] ?

Answer 12

If wanted to create a trust but didn’t get around to it, if same person is appointed as executor them having the legal trust through this is sufficient.

Question 13

What is a contingent interest?

Answer 13

A conditional interest.

Question 14

What is a vested interest?

Answer 14

Don’t have to satisfy conditions

Question 15

What is required for an inter vivos trust ?

Answer 15

Declaration of trust (in writing) + transfer of title

Question 16

What is the every effort rule ?

Answer 16

Trust will be valid if every effort has been made to create a valid Will - I.e put transfer form ‘beyond recall’ not just sign it and leave it in desk

Question 17

If a valid trust is made but failed legal transfer what is the result ?

Answer 17

Equity may still recognise it as it would be unconscionable for the settlor to back out of constituting the trust

Question 18

What is the rule under Saunders v Vautier?

Answer 18

Beneficiaries can end a trust and take property provided all beneficiaries:
- consent
- are adults
- be entitled to trust property

Question 19

What is an additional requirement for trusts of land ?

Answer 19

Must be in writing

Question 20

What is a main difference between fixed and discretionary trusts ?

Answer 20

Fixed requires complete list of beneficiaries

Discretionary must have conceptual certainty as to beneficiaries