Express trust

Express trust

Legal title is held by A but under an obligation to hold the property on behalf of B

A: TRUSTEE

B: BENEFICIARY

• Owner (settlor) declare that he holds the pty on trust for another person (beneficiary)

• Settlor can transfer title to trustees who have agreed to hold the land on behalf of the beneficiary

--> Equity regards the beneficiaries the equitable owner of the pty

Certainty:

1. intention to create a trust

2. subject matter

3. objects (beneficiaries)

--> formalities in the case of trusts of land: s.5(1)(b) CPO: 'A declaration of trust respecting land or any interest therein shall be manifested and proved in writing, signed by the person who is able to declare such trust or by his will'

• Writing is NOT essential for validity

^A lack of compliance of s.5(1)(b) = VALID BUT UNENFORCEABLE

*s.5(2):writing formalities do not apply to resulting or constructive trusts