Beneficial Entitlement Flashcards
(9 cards)
What are fixed trusts?
Where the trustees have no discretion in relation to the distribution of the trust property, and they must distribute as directed by the settlor.
What is a successive interest trust?
A trust involving a series of consecutive interests in the same trust property
What is a lifetime interest trust?
- A common type of successive interest trust
- A beneficiary receives income during their lifetime, with another beneficiary or beneficiaries becoming entitled to the capital after the income beneficiary’s death
What is an income beneficiary?
The beneficiary entitled to the income produced by a successive interest trust.
What is a capital beneficiary?
The beneficiary entitled to the capital held on a successive interest trust.
What is an income beneficiary of a life interest trust also known as?
The life tenant
What is the capital beneficiary of a life interest trust also known as?
The remainderman
What is the rule in Saunders v Vautier?
A sole adult beneficiary of sound mind, with a vested interest in the trust property, is entitled to direct the trustee to transfer the legal title to them
What is the extension of the rule in Saunders v Vautier?
If each beneficiary (a trust with multiple beneficiaries) has a distinct interest in the trust property, which can be severed without impacting the others, they can separately exercise their Saunders v Vautier rights.
