key terms

Question 1

what is equity?

Answer 1

1) Enforces those rights and duites not recongnised by the common law
2) “gloss” on the common law

Question 2

what is a settlor?

Answer 2

person who owns the property. legal terms they hold the legal estate and the equitable interest in that property.

Question 3

what is a trustee?

Answer 3

In a trust, assets are held and managed by one person or people (the trustee) to benefit another person or people (the beneficiary)

Question 4

what is a beneficary?

Answer 4

A beneficiary acquires equitable proprietary rights in property .

Question 5

what is a testator

Answer 5

means a ‘man who made a Will’

Question 6

what is a testatrix

Answer 6

testatrix is a ‘woman who made a Will’.

Question 7

what does intervivos trust mean

Answer 7

A trust that comes into affect when the settlor dies

Question 8

what is a testementary trust

Answer 8

a trust created in a will

Question 9

what is a trust?

Answer 9

a legal relationship created (in lifetime, or on death) by a settlor

Question 10

what does reminader mean in a trust

Answer 10

a beneficiary whose interest vests at a later time.

Question 11

what does vested interest mean

Answer 11

the beneficiary is already entitled to the interest

Question 12

what does contingent interest mean

Answer 12

the beneficiary must meet a condition to become entitled to the interest e.g. marriage

Question 13

what is a private trust?

Answer 13

a legal contract that holds and manages assets

Question 14

what is a public trust

Answer 14

an organization that manages money for a particular charity or group of people

Question 15

what does it mean by express trust

Answer 15

This means that the settlor was willing to create a trust

Question 16

what does it mean that a trust is implied

Answer 16

A trust declared by a party not directly but by implication

Question 17

what is fixed trust mean

Answer 17

A trust in which the interest of the beneficiary is identified and fixed

Question 18

what does discretionary trust mean

Answer 18

an arrangement that gives trustees:
flexibility
control over how best to use the trust assets for the benefit of the beneficiaries.

Question 19

what does a secret trust mean

Answer 19

where a person who has made a will (the testator) leaves a gift to someone in their will

but intends that the recipient (the secret trustee) holds it

to make a gift on to another person (the beneficiary).

Question 20

what does a constructive trust mean

Answer 20

A trust that arises by operation of law where it would be unconscionable for a person (A) who holds an asset to deny the beneficial interest of another person in the asset.

Question 21

what does a resulting trust mean

Answer 21

A type of trust that is imposed by law. It returns the beneficial ownership in the trust property back to the settlor.

Question 22

what does statutory trust mean

Answer 22

A trust that arises on an intestacy where the issue of the deceased are entitled to the whole or part of the estate. The terms of such trusts are set out in section 47 of the Administration of Estates Act 1925, which provides for a child’s share to be held in trust until the age of 18