Trusts and Powers. Flashcards
When does a trust exist?
1) When a person (the trustee); 2) holds a right (the subject); 3) is required by equity to use that right for the benefit of; 4) another person (the beneficiary); or a particular purpose (the objects).
Who are the trusts for persons enforced by?
The beneficiaries.
Who are the trusts for charitable purposes enforced by?
Enforced by Crown (Charity Commission).
What are the standard duties for express trustees?
1) Obey the trust; 2) account to the beneficiaries; 3) take care of trust assets; 4) exercise powers for proper purposes; 5) avoid conflicts of interest or duty.
If a trustee carelessly transfers assets to a non beneficiary can settlor sue that person?
Yes.
What is an agency?
Made up of a principal and his agent. An agent has the power to affect principal’s legal relations with others.
If a trustee obeys trust who does the agent obey?
Principal.
Unlike trusts an agency is finished when?
Agent or principal dies.
What is a bailment and who is the bailee?
A bailment is when someone has possession of tangible personal property for a limited time or purpose. Bailee is the one in possession of that property.
Who has the right to possession when bailment ends?
Bailor.
Does the bailee owe a duty of care to the bailor?
Yes.
In relation to trusts; what is a power?
A power is something that a trustee or another may choose to exercise.
What is a bare power vs a fiduciary power?
A bare power is held in personal capacity, has no duty to consider to exercise, and has power of appointment in will. A fiduciary power is held in official capacity for particular purpose, and one must consider whether to exercise it.
What is an administrative power vs dispositive power?
An administrative power allows to invest, sell, lease, and insure while a dispositive is about maintenance, advancement, encroachment, and appointment.
What is the power of appointment?
It is the power to dispose of assets.
