Chapter 16: Managing a Trust Flashcards
(11 cards)
Essential Elements of Creation
What is Certainty of Intention?
Words Used by the Settlor to Declare a Trust.
Imperative Not Precatory
Essential Elements of Creation
What is Certainty of Subject Matter?
Property Put Into a Trust is Identified Precisely.
Essential Elements of Creation
What is Certainty of Objects?
The Beneficiaries of a Trust.
Clearly Shown
Complete Constitution
When Does a Trust Become Completely Constituted?
When the Legal Title of Trust Property is Transferred and Vested in the Trustees.
Trustees’ Powers and Duties
What is Power of Maintenance?
Section 31 of TA 1925
Trust Income Can be Used for the Maintenance, Education or Benefit of Minor Beneficiaries.
Irrespective of the Trust Deed
Trustees’ Powers and Duties
What is a Beneficiary Entitled to When Turning 18?
Section 31 of TA 1925
An Interest in Possession in Their Share of the Trust.
Entitled to Income From Trust Property
Formalities
What is the Maximum Perpetuity Period for a Trust Settled on or After 6 April 2010?
125 Years.
Formalities
What Trust is Exempt From the Rule Against Perpetuities?
Charitable Trusts.
Variation of Trust
When Can Trust Terms be Varied Under the Rule in the Case of Saunders v Vautier ?
Where All Beneficiaries of a Trust are Sui Juris and Have Vested Interest.
Over 18 and of Sound Mind
Appointment of Trustees
Trustees Can be Replaced in the Following Situations:
- Death
- Outside the UK for More Than 12 Months
- Retirement
- Refusal or Unfit to Act
Duties of Trustees
Trustees Must Carry Out Their Duties in the Following Mannerisms:
- With Reasonable Skill and Care
- In the Best Interest of Beneficiaries
- Impartially
