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Finance And Administration > C11 - Trust Creation > Flashcards

C11 - Trust Creation Flashcards

1
Q

Classification of trusts

Express

A

Created intentionally in lifetime or existence upon death

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2
Q

Classification of trusts

Constructive

A

Operation of law, order of court

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3
Q

Classification of trusts

Resulting

A

When intended trust fails

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4
Q

Classification of trusts

Implied

A

From circumstances

Not intended

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5
Q

Sham trust

A

Settlor acts as if he wants to set up trust

Interfere with daily running

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6
Q

Valid trust

Three certainties

Object

A

Must have ascertainable beneficiaries

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7
Q

Valid trust

Three certainties

Intent

A

Intended to create trust

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8
Q

Valid trust

Three certainties

Subject

A

Identifiable trust property

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9
Q

Valid trust

Must also have

A

Settlor have legal capacity

Owned assets

Completely constituted. (Properly legal ownership of assets)

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10
Q

Users of trust

A

Wealthy individuals, entrepreneurs

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11
Q

Advantage of trust

A 
Tax avoidance
Preserving confidentiality
Assets in safe jurisdictions 
Estate planning
Asset protection
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12
Q

Disadvantage of trust

A 
Costly
Separation of legal
Ownership not recognised 
September can't do exactly what they want to do with it
Not got same attitude to risk as trustee
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13
Q

Trust instrument

Trust deed

Interpretation clause

A

Definitions

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14
Q

Trust instrument

Trust deed

Proper law clause

A

Law governing

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15
Q

Trust instrument

Trust deed

Disapprove provisions

A

Terms trustees hold property and distribute to beneficiaries

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16
Q

Trust instrument

Trust deed

Admin provision

A

Trustee appointment/removal

17
Q

Trust instrument

Trust deed

Schedule

A

Powers, of protector, initial settled funds, benefits and excluded persons

18
Q

Trust instrument

Trust deed

Signature

A

And witness

19
Q

Essential features of a trust

A

Protector - ensure beneficiaries are looked after

Settlor - place 1st asset in trust

Trustee - control/legal ownership

Beneficiaries- person/entity receive benefit

Trust - pooled assets. No legal personality

20
Q

Perpetuity period

A

Calculated by preference to someone in existence at time trust created

21
Q

Cy-pres doctrine

A

If charitable first finds itself without beneficiaries, court make order that trust property applied for similar charitable purpose

22
Q

Void

A

Outcome as if transaction hasn’t happened

23
Q

Voidable

A

Valid until avoided

Finance And Administration (19 decks)

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