Lecture notes
Law notes: Lecture on Equity and Trusts
- Module
- Equity And Trust
- Institution
- City University (City)
Law notes: Lecture on Equity and Trusts
[Show more]
Seller
Follow
Content preview
Revision NotesTrusts & Equity: Lecture 1
A trust allows more than one person to own a property. There is a trustee who is the legal
owner, the beneficiary who is the equitable owner.
The trustee holds the legal ownership of the property, and the beneficiary has a beneficial
interest in the property.
Express trust Created by the “settlor”, who transfers property to a
trustee for a valid purpose.
The settlor is the owner of the property which is
settled onto the terms of the trust.
When the trust is created by the settlor, the legal
title in the property which is settled on trust passes
to the trustees.
Resulting trusts Implied by court, they are not created intentionally
by the settlor. Resulting trusts arise in two situations:
1. Westdeutsche Landesbank Girozsentrale v
Islington LBC; where the settlor has
transferred the legal title in property to a
trustee but has failed to identify the person
who will take the equitable interest in the
trust property, that part of the equitable
interest in the trust property, that part of the
equitable interest which has not been settled
on trust for an identified enficiary will be held
by the trustee on a resulting trust for the
settlor.
2. Where a person contributes to the purchase
price of property, that person acquires an
equitable interest in the property. The size of
the equitable interest will be equal to the size
of the contribution in proportion to the total
purchase price of the property. Therefore, if a
person contributes 20,000 to the purchase of
an asset which cost 100,000, that person
would acquire an equitable interest equal to
20 per cent of the value of that property on
resulting trust principles.
Constructive trust This trust arises by operation of law, that means they
are implied by the court when the circumstances are
considered appropriate. There is no settlor who
intentionally creates a constructive trust. When a
defendant has knowingly acted unconsciously in
taking property into their possession then the
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 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 soumaiadjellak. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
60904 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now