Generally the beneficiary gets interest and dividends on the trust assets for a set number of years.
Law of equity and trust confers the provision regarding the trust. It laid down several duties and responsibilities for the trustees. Trust can be raised from either trust deed/covenant as said before or by the Will, i.e. a testamentary trust is a trust created by a Will or a codicil to a Will. A testament is a Will. Here the trust instrument is the Will/Codicil. A testamentary trust can not be by inter vivos i.e it can not be exist between living persons. Generally there can be two types of disputes raised from this type of the trust established by the law. a) Dispute concerning property left in Wills which are over the capacity of a testator b) dispute regarding whether the testator made the Will under undue influence.
Here there is a rule that he/she must dispose of that property personally and may not delegate that power of disposition to another. Tatham v Huxtable(1950) 81 CLR 639 where the Court insisted to keep up the rule "Will directed the executor to distribute the residuary property "to others not otherwise provided for who, , have rendered service
meriting consideration by the testator."( Kitto J,1950).(1)
In our case, Brain has appointed Tony and Nathan as executors and trustees under his Will (testament) over the trust deed which he (the testator) had made earlier where his children Pat and Richard are the trustees. Before we render the service of tackled conclusions to Tony and Nathan, it is inevitable to have a look upon the rules, provisions, scope of trustees of trust deed and trustees of testamentary trust.
The testamentary trust property and trust property
There will always be some testators who draft their own will trusts, there will always be those who die intestate so that their property passes on statutory trusts, and there will always be legally qualified draftsmen who will not draft trusts as ably as other draftsmen. A Will can also include provision for establishing a Testamentary Trust, which can be a tax effective tool for distributing your estate.
How much fairer, simpler and cheaper if all settlers are treated equally and all trust instruments are significantly shortened by virtue of a wide range of statutory default powers conferred upon trustees, except to the extent extended, excluded or modified by the trust instrument. Moreover, there seems no reason why these powers should not be made applicable to existing trusts as opposed to new trusts so that, from the commencement of the proposed Act, the trustees will be able to cope with fundamental changes in the way in which investment business is carried on without the time, trouble and cost of applying to the courts for new powers.
All deceased estates are for a time at least, "testamentary trusts". On death, the assets of the deceased vest in the