Class notes
The Creation of a Trust (formalities)
- Course
- Institution
Lecture notes including key cases, analysis and theories
[Show more]
Seller
Follow
annamutter
Content preview
EQUITY AND TRUSTSUnit 1- Introduction to Equity and the Formalities Required to
Create a Trust
Lecture 1- Introduction to the Module
Module Convenor- Steve Evans
Each unit has its own tutorial (8 units), themes and concepts overlap throughout the units,
they are not completely stand alone (however the topics will not be mixed/overlapped in
the exam)
Top tips for high marks-
Listen to all the lectures (unit guide for each unit)
Tutorial- the more you put in, the more you get out (recommend having the camera
on during tutorial)
Formative assessment at the end of Semester 1
Hanbury and Martin- Modern Equity is the course textbook
Haley and McMurtry- Equity and Trusts is another good one
Property Law Statute Book (2019 or 2020 is fine)
Lecture 2- What is Equity?
Why do we need equity when we have the common law rules? Equity can be used if the
common law rules are not fair
Example: I go to Australia for 10 years and give you the legal ownership to my farmland in
England. When I return, I want that land back, but the common law says no because you
transferred the legal ownership to someone else. This isn’t fair/just so equity comes up with
a solution
There are 2 layers of ownership, separate – Equitable Ownership and Legal Ownership
There is a legal owner or an equitable owner (beneficial owner)- this is the concept of the
trust
Equity allows us to impose duties on the trustee (legal owner) and sue him if he breaches
Investment Trusts/Pension trusts- put the money in someone else’s name but they invest it
for you, its still your money
Trustee- person holding something (money, land) for the beneficiaries use.
, Historians think the concept of trust in English law is the greatest contribution to the world
of law. Now legal jurisdictions who have common law use this concept.
Offshore Trusts- transfer your money to another jurisdiction, money is still yours, but it is
someone else’s name. (can be used for tax avoidance)
Trusts for when you die- wills and trusts funds
Settlement- documents setting out the terms of the lifetime trust
Settlor- the person who makes the settlement
Testator- If your killed off
Do not need to set a trust in a will, all the money goes to executors and then they sort it
between the beneficiaries.
If the will states money goes to the children once they reach 18, a trust must be set up.
Executor becomes the trustee until the child is 18. (they look after the money until then)
Princess Diana left a trust in her will for her estate to go to Will and Harry when they were
25.
Pilot trust- add to your already set up trust in you will (when I die the trustee gets the rest of
my estate as well as what I arranged before)
Limited Interest- do not get to spend the estate left after death, they get the income ie:
dividends, rent on investments
Absolute Interest- Can spend all the capital that is left in the will
In possession- can have the money now
In remainder- can only have the money later (eg: when someone else dies (spouse))
Can have a contingency to fulfil before they get the money (eg: turning 25)
Vested- if you have no contingency to fulfil, you get the money outright straight away.
If you agree you can “bust the trust” split the money between the beneficiaries if the
law/wording of the trust permits it.
Fixed Trust- straightforward trust (you get this and then you get this at this time)
Discretionary Trust- when the beneficiaries can decide what happens to the money
Bare Trust- Have to do what their told about the money that they are holding for somebody
else (bare trustee) (bank, stockbroker)
Unconscionability- a word used to justify equity, can’t usually define it
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller annamutter. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now