Equity definitions Flashcards
(31 cards)
what is a trust?
a rel which arises where 1 person or more (the trustee(s)) is/are compelled in equity to hold property/assets for the benefit of another or others (the beneficiary(s)) or for a purpose permitted by law.
how is a trust established?
A trust is established by a Settlor inter vivos or by a Testator by his Will’.
what is a trustee?
- HOLDS LEGAL TITLE holds legal title to property for another person, called a “beneficiary.” If you have been appointed thetrusteeof a trust, this is a strong vote of confidence in your judgment and probity.-legal owner of the property/assets.
what is a beneficiary?
- PERSON ENTITLED TO BENEFIT the person or persons who are entitled to the benefit of any trust arrangement. … It is also possible to have trusts for unborn children, although the trusts must vest within the applicable perpetuity period.-are the equitable owners of the assets.
what is a legal owner?
ownership thelegalrelation between a person (individual, group, corporation, or government) and an object. The object can be furniture, or a creature oflaw such as a patent, copyright, or annuity; it may be movable, such as an animal, or immovable, such as land.legal title= actual ownerhsip of land
what is an equitable owner?
“equitabletitle”- a person’s right to obtain fullownership of a property or property interest. This is often contrasted with or used in conjunction with the term “legal title.” the right to require the legal title- have an equitable interest
what is legal adminstrative powers?
to implement theirpower sand duties in the form of rules, regulations, orders, and decisions. – legally delegate
what is economic ownership?
Legalownershipof an asset means that the legal person or individual (“Person”) claiming legalownershipis regarded to be the legalownerunder the (civil) laws of the country in which the Person and/or the asset is located. … This risk transfer is a transfer of (part of the)economic ownership.
what is a life tenant interest?
Life tenant interest- trust that is established to provide a beneficiary with the right to receive the income (after expenses) from the trust. The beneficiary is known as the life tenant. This right is usually given for their lifetime. On their death the trust fund is passed to the other named beneficiaries, known as the ‘residuary beneficiaries’.
what is a beneficiary known as in life tenant interest?
The beneficiary is known as the life tenant. This right is usually given for their lifetime. On their death the trust fund is passed to the other named beneficiaries, known as the ‘residuary beneficiaries’.
what is a discretionary trust?
the beneficiaries do not have a fixed entitlement or interest in thetrustfunds. The trustee has the discretion to determine which of the beneficiaries are to receive the capital and income of thetrustand how much each beneficiary is to receive.
what is a settlor?
a person who makes a settlement, especially of property in establishing a trust.
what is a fixed interest trust?
He or she cannot change the beneficiaries or the benefits they are set to receive. The most common type offixed interest trustis a lifeinterest trust, under the terms of which one individual will have a right to all of thetrust’sincome during his or her lifetime.
what is a capital sum?
a lump sum of money payable to an insured person or paid as an initial fee or investment.
what is a remainder man?
a person who inherits or is entitled to inherit property upon the termination of the estate of the former owner. Aremaindermanholds an interest in the remainder and will become its possessor at some future time.
what is a life tenant?
lifeestate is the ownership of land for the duration of a person’slife. In legal terms it is an estate in real property that ends at death when ownership of the property may revert to the original owner, or it may pass to another person.
what is a legal paper owner and what are real owners?
Legal paper owners – propertyReal owners – in equity
what are express trusts?
Self declaration of trust to b and An express trust can arise in various ways,e.g:
what are various ways an express trust arises?
(i) Where S the owner of Blackacre declares himself trustee of the property for B (‘self-declaration of trusteeship’);(ii) Where S, owner of Blackacre conveys it to Z ‘on trust’ for B;
what is a resulting trust?
ben interest returns back to settlor/testator
what is an automatic resulting trust?
If there is a ‘gap’ in the beneficial ownership, (‘equity abhors a vacuum’) and the equitable interest results back to the Settlor/TestatorEither gap/ trust fails/surplus of funds after pt
what is beneficial ownership?
Beneficial ownership- Beneficial owneris a legal term where specific property rights (“use and title”) in equity belong to a person even though legal title of the property belongs to another person – so basically legal title and eq title – trustee and beneficiary
what is presumed resulting trust?
Where property is purchased in the name of another, there is a presumption that the then legal owner holds that property on trust for the man who advanced the purchase money. Equity respects ‘the solid tug/input of money’, Dyer v Dyer (1789), Re Vinagradoff [1935].
what is a constructive trust?
A Constructive trust of property can be imposed by a court wherever ‘justice and good conscience require it-A party knowingly receives trust property or is an accessory who dishonestly facilitates a trustee’s breach of trust.
