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Flashcards in INTRO TO TRUSTS Deck (14)
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1

What is a trust?

Allows more than one person to own property -> trustee owns property for beneficiary

2

Which case did LORD BROWNE-WILKINSON give the four elements of a trust?

WESTDEUTCHE LANDESBANKE v ISLINGTON LBC 1996

3

What are the 4 elements of a trust as per Lord Browne-Wilkinson?

1. It's equitable
2. Gives beneficiary rights in property
3. Imposes duties/obligations on a trustee
4. Duties/obligations are fiduciary in nature

4

What does fiduciary mean?

Based on loyalty and good faith, but given legal standing

5

Three separate types of trust

EXPRESS
RESULTING
CONSTRUCTIVE

6

The 3 parties involved in a trust

- Settlor
- Trustee
- Beneficiary

7

Describe a settlor

They have absolute title to the property and then set up a trust
Gives legal title to trustee
Gives equitable interest to beneficiary

8

Describe trustee

Has legal title vested in them
Have duties/obligations as per the trust document

9

Three different types of trust document?

1. Bare trust = single beneficiary
2. Fixed trust = multiple benficiaries
3. Discretionary trust = trustee has power of discretion as to what beneficiaries receive

10

Describe beneficiary

Has equitable interest in the property
Rights are dependent on what type of trust it is

11

SAUNDERS 1841

- Absolutely entitled beneficiaries who are of age/sound mind can direct trustee to deliver trust property (legal title)
- This makes beneficiary absolute owner/s

12

What is a resulting trust?

When a trust is found to be implied by the courts

13

Two situations for a resulting trust?

1. No certainty of objects (beneficiaries) so settlor becomes the beneficiary
2. Where a person has contributed to the cost of property they are entitled to equitable interest in percentage they paid for

14

What is a constructive trust

Courts impose a trust onto an individual who has acted unconscionably in an attempt to create an equitable outcome