- Do the three certainties apply to gifts?
- What is a fully secret trust?
- What is a private trust?
- What is a trust and what are its essential elements?
- Who has to execute the trust?
- What is the difference between a resulting trust and a constructive trust?
- What is a default beneficiary?
- What is the object of a trust?
- How do you express a trust?
- How do we classify trusts?
- What is the beneficiary principle?
- Why does equity insist upon the 3 certainties?
- What are the essential elements of a valid trust?
- How does a trust fail?
- What is certainty of object?
- What is a gift subject to a condition precedent?
Do the three certainties apply to gifts?
‘ – court will try to interpret the words and conduct used as much as possible to give effect to the trust.
The three certainties apply to both gifts and trusts although the concept was first propounded in relation to trusts (in Knight v Knight (1840) 3 Beav 148 – Lord Langdale identified the 3 certainties..
What is a fully secret trust?
Fully secret trusts arise where a Will contains an absolute gift to a beneficiary but, outside the Will, the testator has asked him/her to hold the legacy on trust for someone else and the Will beneficiary has agreed. The terms of the trust and the trustee’s agreement must be communicated before the testator’s death.
What is a private trust?
What is a private trust? A designated private trust is a trust that includes family trusts, testamentary trusts and those fixed trusts with fewer than 50 members. This includes overseas trusts.
What is a trust and what are its essential elements?
The trust concept Fundamental is the understanding of the concept itself. … This definition recognizes the four essential elements of a trust, the trustee, the beneficiary, the trust property and the personal obligation imposed on the trustee in respect of the trust property.
Who has to execute the trust?
According to section 10 of Indian Trusts Act 1882 states that “Every Person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract.”Thus trustee holds a fiduciary position.
What is the difference between a resulting trust and a constructive trust?
A resulting trust is based upon the presumed intention that arises where a person provides funds for the purchase of property. A constructive trust is founded upon a common intention that can either be expressed or inferred but cannot be based upon an intention that the parties never in fact had.
What is a default beneficiary?
The first type of beneficiary is the default beneficiary. These beneficiaries are entitled to any income from the trust as it arises. … If no appointments are made by the end of the trust period, the default beneficiaries will receive all of the benefits.
What is the object of a trust?
The objects of a trust are the people who benefit from it (beneficiaries). … certainty of words, (it must be clear what the settler intended the trust property to be used for); and. certainty of subject matter (the exact property that is to be the subject of the trust must be identifiable).
How do you express a trust?
What is an Express Trust?There must be a settlor (creator);The settlor must deliver legal title to property;The property, also referred to as res, corpus, or trust principal, must be delivered to a trustee;The trustee must hold a valid legal title to the property;More items…•
How do we classify trusts?
Trust Classifications Trusts may be classified by their purpose, duration, creation method, or by the nature of the trust property. One common way to describe trusts is by their relationship to the life of their creator. Those created while the grantor is alive are referred to as inter vivos trusts or living trusts.
What is the beneficiary principle?
The beneficiary principle is the concept that a private, express trust must be for the benefit of a beneficiary who the trustees can either ascertain or is at least ascertainable. … As a general rule, a trust set up for a purpose instead of ascertained or ascertainable beneficiaries will be void.
Why does equity insist upon the 3 certainties?
For an express trust to be valid there has to be three certainties. These are certainty of intention, certainty of subject matter, and certainty of objects. Without these certainties, an express trust will not be valid. The purpose of these certainties is to ensure the trust is properly controlled and enforced.
What are the essential elements of a valid trust?
The usual elements of a trust are:Intent to create a trust;A specific trust “res” (trust property);Designation of the parties (settlor, trustee and beneficiary); and.A valid trust purpose.Intent.
How does a trust fail?
If a trust fails to do what the client wanted (transfer assets by specific instructions contained in the trust, or avoid probate, for example), then it has failed whether the trust is legally sufficient or not.
What is certainty of object?
“Certainty of objects” means that it must be clear who the beneficiaries, or objects, are. … “Ascertainability” is where a beneficiary cannot be found, while “administrative unworkability” is where the nature of the trust is such that it cannot realistically be carried out.
What is a gift subject to a condition precedent?
Gift subject to a condition precedent do not require the same degree of conceptual certainty as discretionary trusts. A gift made subject to a condition precedent is one to which the donee will not be entitled unless they satisfy the condition, e.g. $10,000 to each of my children who graduate from university.