Creation and requirements of express trusts

Question 1

What is a trust?

Answer 1

An equitable duty relating to property
Essential features:
* Property component = fundamental
* Obligation component

Question 2

Property component of a trust can be…

Answer 2

• Legal interest - trustee is an owner
• Equitable interest - beneficiary has equitable and beneficial interest (= true owner)

Question 3

What can be held on trust?

Answer 3

Almost every asset or right
* Can be a trust of a chattel
* Or a chose in action
* Or right or obligation under an ordinary legal contract
* Just as much as a trust of land

Lord Strathcona Steamship Co Ltd v Dominion Coal Company Lt

Question 4

Chattel

Answer 4

A tangible item (toher than land)

Question 5

Chose in action

Answer 5

An intangible right such as a debt (eg an amount credited to a bank account) or a company share giving the shareholder rights.