“He is the beneficiary of a generous trust set up by his father” his condition or obligation of one to whom anything is confided; responsible charge or office.” We can summarize the term trust in this manner. The trust property is something held by one party for the…
tion behind the creation of trust is that the devisee or grantee shall convey it, or dispose of the profits, at the will, or for the benefit, of another; an estate held for the use of another; a confidence respecting property reposed in one person, who is termed the trustee, for the benefit of another, who is called the cestui que trust. 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
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.
There will always be some testators who draft their own ...
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This is usually inferred from words such as “trust” and “confidence”.3 However, Mergarry J stated that specific words such “trust” and “confidence” are not necessary, provided there is “in substance a sufficient intention to create a trust”.4 The gift to Pamela is stated in uncertain terms in that the settlor specifically he expresses his desire that the gift of 500,000 pounds to Pamela will be held upon trust for their children’s future.
At that time, the affected parties have the prerogative to file petition to the Crown. The appeals of the appellants were handed over to Lord Chancellor. Those who have read Charles Dickens’s Bleak House know that by the 18th Century, equity had become obsolete.
It names the persons whom should inherit from the deceased and what they should inherit and whether there are any conditions attached to the bequeathed property. Any person who has attained the majority age and is of sound mind can prepare a will and should clearly state that they are the makers of that will, they write it under no duress and are of sound mind at the time of the writing of the will.
f in a position where his interest and duty conflict.5 Aside from putting the two rules together, the ruling in Bray also speaks to the strict application of the rule by using the word “inflexible”. The inflexibility of the rule suggest that in discretionary trusts, the trustee may be less inclined to exercise a reasonable discretion for fear of accusations or claims that he or she made a profit or placed himself or herself in a position where there was a conflict of duty and interest.
In many cases, unclear trusts established by deceased people leaves the court to use its wisdom, based on the scarce available information to determine who should get the disputed estate or how the people conflicting on the discounted Intestate Estate should share the estate.
If the legal rules did not provide a solution to the problems, it was possible to petition the Crown. The origins of jurisdiction have brought in the principles of equity that could now be applied to every civil court in the land. According to some judicial interpretations, trusts are one of the greatest inventions of equity so such definitions would not make any fundamental distinction between trusts and equity and would consider trust as a branch of equity.
This legislation established a unified Supreme Court of Judicature, effectively fusing the administration of equity and common law. The need for ongoing creativity by equity was recognised after the Judicature Acts 1873-75 came into force:
I intentionally say modern rules, because it must not be forgotten that the rules of Courts of Equity are not like the rules of the Common Law, supposed to have been established from time immemorial.
As stated by Tony Blair, “the current law is unclear, has not evolved in a way which best meets the needs of contemporary communities and does not reflect the diversity of organizations which operate for the public benefit.”1 Thus, while