Trust is an essential element of estate planning. Trust is a right created in the property by one person for the benefit of another. Various kinds of trusts are resulting trust, Statutory or constructive trust and express trust.
Express Trust: Express Trust is be made by settlor by transferring property to a trust for a valid purpose…
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It may be either a person or a legal entity; iv) Beneficiary, i.e. the person for whose benefit the trust was created. v) Purpose of the trust, i.e. the trust must have a purpose, which is legally valid.
Express Trusts are further broadly classified into i) Living Trust: It is also known as inter vivos trust is made for the advantage of another during the lifetime of settlor. ii) Testamentary trusts: These are created by the will of the settlor. That means, the settlor's property will be converted into trust property only after his death. iii) Revocable Trusts: It is a trust where the setlor has full control over the trust property, and he can change or annul the trust at any time. This is a trust, which is at the whims and fancy of the settlor. iv) Irrevocable Trusts: As the name implies, this is a trust, which cannot be revocable except the consent of the beneficiaries, and trustees. Moreover, the trust does not fizzle out once the purpose of the trust is fulfilled. v) Fixed Trusts: These are those trusts where the trust property will be shared by the beneficiaries as per the calendar fixed by the settlor. In distributing the property, the trustee has no discretion to play. Gartside v IRC  AC 553 the Inland Revenue argued that as each beneficiary might be entitled to income from the trust fund, they should each be charged as if they were entitled to the whole of the fund. vi) Discretionary Trusts: They are those trusts where the trustee has absolute power in management, administration and distribution and allocating the shares of the trust property to beneficiaries. This trust offers many tax benefits to the beneficiaries, as no interest is created to them until the property is distributed.
Rights of beneficiaries:
Under a discretioanry trust, the rights of individual beneficiaries are not clear. In Re Smith  Ch 915 it was held that the trustees had to draw up a "complete list" of beneficiaries, but this principle is changed in McPhail v Doulton  A.C. 424, 451, in case of family trust.
Schmidt v Rosewood Trust Ltd  UKPC 26,  3 All ER 76: In this case the court held that 1) The court has inherent jurisdiction to supervise and even intervene in the administration of a trust if necessary. And there is no exception even in discretionary trust. 2) This inherent jurisdiction is the fundamental of law of trust. 3) The right to seek the court's intervention did not depend on entitlement to a fixed and transmissible interest. 3) The court has the discretion to intervene to maintain the balance between the competing interest of beneficiaries, the trustees and the third parties. Gartside v IRC  1 All ER 121 at 134.Re Manisty's Settlement  2 All ER 1203 at 1211-1212, Mettoy Pension Trustees Ltd v Evans  2 All ER 513 at 549.
1. Transactions made by the trustees in the course of management of trust property:
The trustees made the following three transactions:
1. Sale Vintage care for 15,000 during the last year to Crowther's son,
2. Payment of legal management fee of 25,000 to the solicitors firm in which the trustees are partners.
3. Decided to invest from existing deposits in to a) partly
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(“Law of express trust Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
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(Law of Express Trust Case Study Example | Topics and Well Written Essays - 1000 Words)
“Law of Express Trust Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/law/1527605-law-of-express-trust.
Name Instructor Task Date Federal Express Introduction Cargo transporters are the leading transport services recommended for transporting required commodities to various destinations across the world. Federal Express is an example of transport facilities. Disagreements have risen between customers and the business regarding delivery of commodities to various destinations requested by the customers.
John and Sue had the responsibility for handling the Fido Trust for the express purpose of providing care for Mike’s dog and cat. Instead, they immediately took the dog and cat to the local animal charity, a gross breach of trust and of responsibility on their part. Further, this breach of trust and responsibility was all the worse because it was done for monetary reasons.
De Beers slowly and steadily ensured that all the diamond mines in Africa, specifically; South Africa was in their control or was working in line with their decrees. Most of the mines in South Africa were bought out by De Beers and the others started working closely with them in order to fix the price for the rough and uncut diamonds.
If the property has to be sold then all the legal owners have to accord their permission. In case of dispute a single owner can sue in the court regarding the sale proceedings. Another aspect to be considered is whether there is any beneficial ownership to be taken into consideration apart from the legal ownership.
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As can be seen by their statements, American Express is not just selling a product, they are selling a reputation and they have succeeded at it.
Without any monetary consideration from Bill. This was done without the intention of any beneficial ownership to Bill. 1
ch. 269 it suggests that it is not correct to talk in terms of equitable title remaining with the settlor.3 However quoting Mergarry J, he distinguished that there are two major categories of resulting trust which can be distinguished between automatic and presumed resulting trust , as follows to wit:
Regardless of his own personal interests and preferences the trustee has a fiduciary duty to act always in the best interest of the trust. A trustee is normally expected to hold and administer the trust property for the benefit of the trust beneficiaries in accordance with the purposes set down in the trust deed and according to general trust law.
It is assumed that the will, by which the 950 shares have been bequeathed to the Accountant, Tom, to be held in trust for Ben’s nephew, Andrew, is a written one, since, f Section 53 (1) (c) of the Law of Property Act 1925 categorically states that any verbal or non-written disposition of Equitable interest is void and unenforceable.