Trust Law and Testament
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Questions and Answers

What is the primary purpose of a trust?

  • To hold and manage property for the benefit of another person (correct)
  • To enable a person to avoid paying debts
  • To enable a person to bequeath their property to a minor
  • To allow a person to transfer property to another person without their knowledge
  • What is the name of the division of the High Court that deals with disputes concerning wills and trusts?

  • Crown Court
  • Court of Appeal
  • Court of Chancery (correct)
  • Magistrates' Court
  • What is the type of interest that William is regarded as owning in the land?

  • Vested interest
  • Beneficial interest
  • Equitable interest (correct)
  • Legal interest
  • What is the name of the Acts that fused the administration of equity and common law?

    <p>Judicature Acts 1873 and 1875</p> Signup and view all the answers

    What is the purpose of the equitable intervention in the case of William and Percy?

    <p>To prevent Percy from enforcing his legal rights unconscionably</p> Signup and view all the answers

    What is the age at which Paul should transfer all of Denise's property to Kylie?

    <p>21</p> Signup and view all the answers

    Who is the legal owner of Denise's property after her death?

    <p>Paul</p> Signup and view all the answers

    What is the relationship between Denise and Paul?

    <p>Partner and partner</p> Signup and view all the answers

    What is the essential characteristic of a trust?

    <p>The trustee manages the property for the benefit of the beneficiary</p> Signup and view all the answers

    What are the two main steps to create a trust?

    <p>Make a declaration of trust and transfer the trust property to the trustee</p> Signup and view all the answers

    What is the role of the settlor in a trust?

    <p>To create the trust in their lifetime or by a will</p> Signup and view all the answers

    What is the key difference between a trust and an outright gift?

    <p>A trust separates the management of property from the benefits</p> Signup and view all the answers

    Who holds the legal title to the trust property?

    <p>The trustee</p> Signup and view all the answers

    What is the equitable interest in trust property?

    <p>The right to benefit from the trust property</p> Signup and view all the answers

    What is the role of the trustee in a trust?

    <p>To manage the trust property for the beneficiary</p> Signup and view all the answers

    What is the key feature of a trust?

    <p>Separation of legal and equitable interests in trust property</p> Signup and view all the answers

    Study Notes

    What is a Trust?

    • A trust is an equitable obligation that binds a person (trustee) to manage property (trust property) for the benefit of others (beneficiaries).
    • The trustee holds the legal title to the property, while the beneficiary owns the equitable interest.

    Creation of a Trust

    • To create a trust, a settlor/testator must:
      • Make a declaration of trust
      • Transfer the trust property to the trustee

    Key Roles in a Trust

    • Settlor: The person who creates the trust in their lifetime
    • Testator/ Testatrix: A person who creates a trust by a will, which takes effect when they die
    • Trustee: Appointed and created by the settlor to manage the property for the beneficiary
    • Trustee Duties: Strict duties governing the administration of the trust
    • Trust Property: Can be various types of assets, such as bank accounts, savings, shares, property, etc.
    • Beneficiary: The person who receives the benefit or enjoyment of the trust property

    Why Create a Trust?

    • An alternative to an outright gift
    • Separates the management of property from the benefits or enjoyment

    Case Study: Denise Barlow's Will

    • Denise Barlow, a single parent, made a will leaving her property to her partner, Paul Jackson, to hold on trust for the benefit of her daughter, Kylie, until she is 21
    • Paul, as the trustee, has a duty to manage the property for Kylie's benefit, but he has a gambling addiction and wants to use the property to pay off his debts

    Historical Development of Trusts

    • Before the trust law existed, there was a precursor to the trust
    • In 1274, William transferred his land to Percy to look after it while he was away on a crusade
    • When William returned, Percy refused to give back the land, and the common law courts would not intervene
    • William had to seek redress in equity by petitioning the King, which later became the Court of Chancery
    • The Court of Chancery still exists as a division of the High Court and deals with disputes concerning wills and trusts

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    Description

    This quiz is about understanding trusts, types of trusts, and beneficiaries' rights. It also involves analyzing a will and testament to determine the rights of the beneficiaries.

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