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.
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.
