notes based on Barbri prep course and external resources - summary of UK trusts law in preparation for SQE1 FLK2
in notes:
T = trustee
S = settlor
B = beneficiary
K = contract
Rmanner = reasonable manner
RT = resulting trust
CT = constructive trust
Trusts
Key Concepts:
1. Express and implied trusts
2. The fiduciary relationship
3. Trustees’ duties, powers and liability
4. Equitable remedies
Trust = fid rshp where T holds legal title to specific property under duty to manage for benefit of B who holds benf
title
- Express or Implied
- Implied = RT or CT
- Express = inter vivos or testamentary → private or charitable → if private: fixed, discretionary, or purpose
Public = charitable - tax advantages Private = NCPT
Express Trust = clear intention expressed by S
a. Private Trust = for benefit of ascertainable human Bs - can be:
- Fixed: defined interests - ex. divided equally
- Discretionary: has discretion on distribution
- Purpose: abstract purpose normally fails unless honorary or Denley trusts
b. Charitable Trust = purpose - indefinite class or public
Implied Trust = presumed in equity for fair result
a. Resulting Trust = if express trust fails OR express trust fails to exhaust interest OR voluntary transfer in
name of another → benf interest reverts to S
b. Constructive Trust = prevent unjust enrichment when assurance, reliance, detriment with wrongful
conduct, fraud, breach fid duty
Income = $ generated from trust - arising or accumulated
Capital = assets forming trust property
1
, Express Trusts Requirements
Need 3 C’s, Declaration (for S as T or 3P T), Constitution (if S is not T), Human Bs, RAP → if lacking any then trust
FAILS
3 certainties of intention, subject matter and objects:
○ fixed interest trusts
○ discretionary trusts
formalities to create express inter vivos trusts
constitution of express inter vivos trusts and exceptions to the rule that equity will not assist a volunteer
1. Certainty of - Words or conduct to show intention of binding ‘in full confidence’ w. detailed
Intention obligation instxns = suff
- Need signed writing for land
If fails for intention - S must have intention whilst owning the property at ‘money is as much your
goes to T outright money as it is mine’ = may
time of trust creation
suff in context of joint bank
- S must intend trust to take effect immediately account
- Precatory language insuff - hope, wish, suggestion -
UNLESS words are in binding legal document like deed
2. Certainty of - Valid if objectively defined (Rincome = suff) bulk of my estate = fails
Subject Matter - Entitlement (share) must be defined too
- Share of intangible assets (share) needn't separate to X the house i expect to
If fails for SM reverts - Share of tangible assets (wine in warehouse) must inherit from mom = fails
to S separate to have certainty
- Must be existing interest - expectation interest insuff
3. Certainty of - Bs must be defined with suff certainty by name or my friends = insuff
Objects concept capable of objective determination
- Fixed trust → COMPLETE LIST TEST my exes = suff for
If fails for objects RT - Bs named or described so that T can make discretionary trust
for S complete list with conceptual (description) AND
all or some ppl of Yorkshire =
evidential (proof by records) certainty too wide to make workable as
- Trust w.n fail if B known but c.n locate discretionary trust (2.5mill
- Trust fails if c.n form complete list ppl) = fails
- Discretionary trust → GIVEN POSTULANT TEST
- Description is clear enough to so can say any
individual is in/out of the class - needn't establish
whole range of Bs, suff to know what the range is
- Need conceptual certainty
- Trust fails is administratively unworkable - too
many potential Bs to form a class OR nothing to
link members of class to enable T to decide
distribution
4. Beneficiary - Must be ascertainable human Bs unless charitable trust trust to preserve freedom of
Principle or honorary trust press = fails since no B to
If fails RT for S - Need person to be able to enforce trust enforce
5. Trustee - Inter vivos = must have at least 1 T
- Testamentary = w.n fail for lack of T
2
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper vanessaulysses1. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €12,88. Je zit daarna nergens aan vast.
