A trust is a way for a person to leave/give property to another,
generally on a condition. It will be left to a beneficiary under
What is a trust? the supervision of a trustee who has an equitable obligation
to carry out the trust on behalf of the settlor/testator/testatrix.
Trusts create a separation between legal and equitable
What is the key ownership. The trustee is the nominal owner, holding legal
feature of a trust? title, whilst the beneficiary is the proprietary owner, holding
equitable title.
, Fixed interest trusts are set in the way they should be executed.
Contingent trusts are fixed, contingent on the beneficiary
fulfilling a requirement. Successive interests give a
Fixed Interest Trusts beneficiary interests following a period of time granted to
a previous beneficiary. Bare trusts are let for a beneficiary with
a vested, absolute interest in possession.
Discretionary trusts are left so that trustees can decide
Discretionary Trusts the way the trust will be divided at a later point. They
Require trust in the trustee.
, Vested interest – an
Absolute interest (capital) In possession – holds the
interest not reliant on the
– holds the trust for an interest at the current
beneficiary fulfilling a
indefinite period moment.
requirement.
Limited interest (income)
Contingent interest – an In remainder – will
– holds the trust for a
interest reliant on the receive the interest in the
specific period of time
beneficiary fulfilling a future, upon the expiry of
(e.g. life tenant)
requirement. the other beneficiary(s)
interests.
, The will must be in writing and signed by the testator in the
When is a will valid? presence of two witnesses who then must sign in the
testators presence. (s9 Wills Act 1837)
When do legacies in a If the beneficiary predeceases the testator. If the gift
will fail? is uncertain, it will also fail.
What happens when If the legacy fails, the property will go back into the residuary
a legacy fails? Where estate. It will be left to whoever is to receive the rest of the
does the property go? testator’s estate.
generally on a condition. It will be left to a beneficiary under
What is a trust? the supervision of a trustee who has an equitable obligation
to carry out the trust on behalf of the settlor/testator/testatrix.
Trusts create a separation between legal and equitable
What is the key ownership. The trustee is the nominal owner, holding legal
feature of a trust? title, whilst the beneficiary is the proprietary owner, holding
equitable title.
, Fixed interest trusts are set in the way they should be executed.
Contingent trusts are fixed, contingent on the beneficiary
fulfilling a requirement. Successive interests give a
Fixed Interest Trusts beneficiary interests following a period of time granted to
a previous beneficiary. Bare trusts are let for a beneficiary with
a vested, absolute interest in possession.
Discretionary trusts are left so that trustees can decide
Discretionary Trusts the way the trust will be divided at a later point. They
Require trust in the trustee.
, Vested interest – an
Absolute interest (capital) In possession – holds the
interest not reliant on the
– holds the trust for an interest at the current
beneficiary fulfilling a
indefinite period moment.
requirement.
Limited interest (income)
Contingent interest – an In remainder – will
– holds the trust for a
interest reliant on the receive the interest in the
specific period of time
beneficiary fulfilling a future, upon the expiry of
(e.g. life tenant)
requirement. the other beneficiary(s)
interests.
, The will must be in writing and signed by the testator in the
When is a will valid? presence of two witnesses who then must sign in the
testators presence. (s9 Wills Act 1837)
When do legacies in a If the beneficiary predeceases the testator. If the gift
will fail? is uncertain, it will also fail.
What happens when If the legacy fails, the property will go back into the residuary
a legacy fails? Where estate. It will be left to whoever is to receive the rest of the
does the property go? testator’s estate.
