Express Trusts

Express Trusts

1. Declaring an express trust

   • Settlor transfers legal title to trustee and equitable interest to a beneficiarry
     • settlor must have absolute title
     • trustee acquires all common law rights to the property
       • land: in name of trustee, Bank account: account in name of trustee
     • beneficiary acquires equitable interest in property
       • ultimate interest according to law

2. rights of beneficiaries

   • multiple beneficiaries rights dependant upon terms of trust
     • one person rights for life, then passes to next beneficiary upon death

3. discretionary trusts

   • power to trustee to appoint trust property to beneficiaries according to trust document
     • power of appointment
       • not obliged to transfer funds, but can if certain circumstances arise
       • difference between discretion and POA is whether trustee compelled or merely enabled to act

4. Saunders v Vautier

   • Gives beneficiaries the right to instruct the trustee to transfer the property to them absolutely.
   • B can only exercise power if they hold the entirety of EI and are all legally competent to act
   • demonstrates that B under a trust have proprietary interest in trust fund and not merely personal rights against trustees