Equity & Trust
LG1
Trust is an equitable obligation which binds a person (trustee) to deal with
trust property owned by him as a separate fund for benefit of another
(Beneficiaries)
• Equitable Obligation (DUTY) – imposed on a Trustee
• Deal with a Property
• For the benefit of a beneficiaries who can enforce the obligation
CREATION OF TRUST-
Two steps
1. Declaration of trust and
2. Settlor must transfer the trust property to the trustee.
The benefits will be saved up for or passed to the beneficiaries who own the
equitable or ‘beneficial’ interest.
The trustee transfers trust property to another in breach of trust
E.g- William sells the painting to Mr Lee and the beneficiary wants it
back,
The beneficiary can recover trust property from anyone who receives it in
breach of trust except somebody who is called (Equity’s Darling) i` n breach
of trust (BFPFVWN).
Will is valid under S.9 of the Will act 1837 and therefore must normally
be made in writing and the testator must sign it with two witnesses
present. Then the witnesses must sign the will in the testator’s
presence.
Johns interest is “Life tenant” interested is vested and from the facts
we can see it is a trust in income,
Sarah’s interest is vested when john dies, she will then get the trust
capital
Ademption: If the gift to Zena was valid it will be hers and if the gift is
not valid then it is given back to the estate.
Lapse: any type of gift in a will fails if the beneficiary dies before
(“predeceases”) the testator (subject to certain exceptions) – The gift is void.
Executors- Those people who are named under the will
Admin- When there’s no will, courts will appoint an administration
Examples of trusts-
LG1
Trust is an equitable obligation which binds a person (trustee) to deal with
trust property owned by him as a separate fund for benefit of another
(Beneficiaries)
• Equitable Obligation (DUTY) – imposed on a Trustee
• Deal with a Property
• For the benefit of a beneficiaries who can enforce the obligation
CREATION OF TRUST-
Two steps
1. Declaration of trust and
2. Settlor must transfer the trust property to the trustee.
The benefits will be saved up for or passed to the beneficiaries who own the
equitable or ‘beneficial’ interest.
The trustee transfers trust property to another in breach of trust
E.g- William sells the painting to Mr Lee and the beneficiary wants it
back,
The beneficiary can recover trust property from anyone who receives it in
breach of trust except somebody who is called (Equity’s Darling) i` n breach
of trust (BFPFVWN).
Will is valid under S.9 of the Will act 1837 and therefore must normally
be made in writing and the testator must sign it with two witnesses
present. Then the witnesses must sign the will in the testator’s
presence.
Johns interest is “Life tenant” interested is vested and from the facts
we can see it is a trust in income,
Sarah’s interest is vested when john dies, she will then get the trust
capital
Ademption: If the gift to Zena was valid it will be hers and if the gift is
not valid then it is given back to the estate.
Lapse: any type of gift in a will fails if the beneficiary dies before
(“predeceases”) the testator (subject to certain exceptions) – The gift is void.
Executors- Those people who are named under the will
Admin- When there’s no will, courts will appoint an administration
Examples of trusts-
