Chapter 1: Introduction

• Trust


  A fiduciary relationship in which a trustee holds legal title to specific property under a duty to manage, invest, safeguard, and administer the trust assets and income for the benefit of designated beneficiaries, who hold equitable title
• Express Trusts


  • Created by the express intention of the creator of the trust, known as the settlor
  • Settlor may create a trust in their lifetime (inter vivos) or in their will (testamentary)
• Private Trusts


  • Created for the benefit of certain ascertainable persons
  • May be fixed, discretionary, or purpose trusts
• Fixed Trust


  The interests of the beneficiaries are defined by the settlor
• Discretionary Trust


  The trustee is given discretion in how to distribute the trust property, usually among the members of an identifiable class
• Purpose Trust


  Set up for a purpose rather than for people
• Charitable Trusts


  • Created for the benefit of an indefinite class of persons or the public in general
  • Must fall within the recognised heads of charity to be valid
• Implied Trusts


  A trust is presumed in equity where the intention of the settlor is not expressed, in order to ensure an equitable result
• Resulting Trusts


  Arise when: (1) an interest under an express trust fails, (2) an express trust fails to exhaust the beneficial interest, or (3) a person makes a voluntary transfer or purchase in the name of another
• Constructive Trusts


  An equitable remedy imposed by a court to prevent an unjust enrichment of one person at the expense of another as the result of wrongful conduct, such as fraud, undue influence, or breach of fiduciary duty