Equity & Trust Law: Examining How Trusts Arise - Hudson, Routledge

This essay provides an overview of how trusts arise in equity and trust law, focusing on the distinction between express and implied trusts. Express trusts are created through the settlor's explicit intentions, while implied trusts, including resulting and constructive trusts, are formed by operation of law. Resulting trusts occur when property reverts to the original owner, and constructive trusts are imposed by the court to achieve fairness, irrespective of the parties' intentions. The essay references key legal texts and case laws relevant to the UK and EU legal frameworks, as outlined by Hudson in 'Equity & Trusts' (Routledge, 2016). This analysis helps to understand the different mechanisms through which trust relationships are established and governed.

Running head: EQUITY AND TRUST
EQUITY AND TRUST
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EQUITY AND TRUST
A trust is usually created when a party called a settlor or a trustor settles or transfers one
property on a second party called the trustee in order to cause the benefit of the third party
known as the beneficiary1. The testamentary trust is formed by means of a will and it arises after
the settlor dies2. On the other hand, a trust called intervivos trust is formed when the settlor is
alive by means of a trust instrument called the trust deed3.
Trust may be formed by the settlor’s expressed intentions or by the operation of law4. The
former type of trust is called the express trust and the latter one is called the implied trust. An
implied trust is formed by the court of law due to the acts or certain situations of the parties.
Implied trust is of two types, the constructive and the resultant. Resulting trust is created when
the trust property goes back to the person implied to hold the property for the beneficiary. It
arises when a property is transferred for creating trust to intended trustee but it has not worked
out for some reason. On the other hand, constructive trust arises when by law trust is formed to
do justice to the parties irrespective of their intentions.
1 Hudson, A. (2016). Equity & trusts. Routledge.
2 Michaels, Andrea. "Testamentary trusts: The basics." Bulletin (Law Society of South Australia) 40.5 (2018): 8.
3 Thomson, David. "So, do you think you have a valid trust?." Personal Finance Newsletter 2017.439 (2017): 10-11.
4 Luhmann, Niklas. Trust and power. John Wiley & Sons, 2018.

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EQUITY AND TRUST
References:
Hudson, A. (2016). Equity & trusts. Routledge.
Luhmann, Niklas. Trust and power. John Wiley & Sons, 2018.
Michaels, Andrea. "Testamentary trusts: The basics." Bulletin (Law Society of South
Australia) 40.5 (2018): 8.
Thomson, David. "So, do you think you have a valid trust?." Personal Finance
Newsletter 2017.439 (2017): 10-11.