Equity and Trusts

This assignment provides a detailed explanation of the characteristics of a trust in law. It defines a trust, outlines its key features, and provides references to relevant legal sources.

EQUITY AND TRUSTS

TABLE OF CONTENTS
CHARACTERISTICS OF TRUST.................................................................................................1
REFERENCES................................................................................................................................3

CHARACTERISTICS OF TRUST
Trust is considered as legal relationship created through settlor when assets are directly
placed under control of trustee for vanadate of beneficiary for specified objective. In simple
words, it is a relationship among person where one has power for managing property of retaining
benefits through property and other has presence of privilege to gain benefit through that
property1.
The features of trust are stated below:
 The trust assets comprises separate fund and are not contributing as own estate of trustee.
 The trustee has presence of power along with duty, with context to what is accountable
for managing, employing or asset disposing in terms of trust and special duties directly
imposed through law.
 The legal title of assets of trusts represents in trustee name or with another person on
behalf of trustee2.
 Moreover, reservation through settlor of specific rights along with powers and fact that
trustee might be beneficiary is not consistent with trust existence.
 Its key feature is that it permits from separation of beneficial interest and legal
ownership, so trustees becomes owners of trust property whereas with concern of third
parties, so beneficiaries are directly entitled for expecting that trustees would manage
trust property for benefit3.
 Before creating trusts, the settlor would hold equitable title with context to assets directly
intended to be directly placed in trust4.
1 Hudson, A., 2016. Understanding equity & trusts. Routledge.
2 Costigan, G. P., 1914. The classification of trusts as express, resulting, and
constructive. Harvard Law Review. 27(5). pp.437-463
3 Gissel Jr, L. H. and Schiller, K. R., 1990. Trusts Made Easy: A Simplified Overview of the
Reasons for Creating, Modifying, and Terminating Express Trusts. Prob. LJ. 10. p.241
4 Weinig, G. J., 2013. When Does a Signed Trust Document Not Create a Trust?Trusts and
Estates. Vol. 152 (11). p.40-50
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 After creation, the settlor directly transfers legal title to assets to trustees5.
 The assets are also known as trust property which might considers cash, shares, real
estate, life insurance policies, artworks and other investments6.
5 Thornely, J. W. A., 1960. Trusts of Personalty—Disposition of Interests—Formality. The
Cambridge Law Journal. 18(1). pp.31-34.
6 A comprehensive guide to trusts in the UK. 2019. [Online]. Available through
<https://www.netlawman.co.uk/ia/guide-to-trusts>.
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REFERENCES
Books and Journals
Hudson, A., 2016. Understanding equity & trusts. Routledge.
Costigan, G. P., 1914. The classification of trusts as express, resulting, and
constructive. Harvard Law Review. 27(5). pp.437-463.
Gissel Jr, L. H. and Schiller, K. R., 1990. Trusts Made Easy: A Simplified Overview of the
Reasons for Creating, Modifying, and Terminating Express Trusts. Prob. LJ. 10. p.241.
Weinig, G. J., 2013. When Does a Signed Trust Document Not Create a Trust?Trusts and
Estates. Vol. 152 (11). p.40-50
Thornely, J. W. A., 1960. Trusts of Personalty—Disposition of Interests—Formality. The
Cambridge Law Journal. 18(1). pp.31-34.
Online
A comprehensive guide to trusts in the UK. 2019. [Online]. Available through
<https://www.netlawman.co.uk/ia/guide-to-trusts>.
3