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Equity & Trusts 70517Topic 13Express Trusts
Equity & Trusts 70517Topic 1 - History and Nature of Equity Topic 2 - Unconscionable Dealing and Undue InfluenceTopic 3 - Equitable EstoppelTopic 4 - Equitable Estates and Interests Topic 5 - Equitable Assignment of Legal PropertyTopic 6 - Equitable Assignment of Equitable PropertyTopic 7 - Fiduciary ObligationsTopic 8 - Accessory Liability for Breach of Fiduciary Duty or TrustTopic 9 - Tracing and Account of ProfitsTopic 10 - Equitable CompensationTopic 11 – Constructive TrustsTopic 12 – Resulting TrustsTopic 13 - Express TrustsTopic 14 - Duties, Powers, Rights and Liabilities of Trustees; Rights of BeneficiariesTopic 13 – Express Trusts
Equity & Trusts 70517Topic 13 – Express TrustsPart 1.Introduction to TrustsPart 2.Creation of Express Trusts Part 3.Variation and Termination and Failure of Express Trusts
Equity & Trusts 70517PART 1 – INTRODUCTION TO TRUSTSA.IntroductionA trust is an equitable obligation, binding a person (who is called a trustee) to deal with property over which he has control (which is called the trust property) either for the benefit of persons (who are called the beneficiariesor cestuis que trust) of whom he may himself be one, and any one of whom may enforce the obligation, or for a charitable purpose.Topic 13 – Express Trusts
Equity & Trusts 70517PART 1 – INTRODUCTION TO TRUSTSA.IntroductionTrust: developed from the medieval use of land (first half of 13 century: feudal times):The practice developed of conveying land to “feoffees to use” (“trustees”) to be held by them “to the use of the cestui que” (“beneficiaries”).In English law, feoffment was a transfer of land or property that gave the new holder the right to sell it as well as the right to pass it on to his heirs as an inheritance. It was total relinquishment and transfer of all rights of ownership of an estate in landfrom one individual to another.In feudal England a feoffment could only be made of a fee(or "fief"), which is an estate in land, that is to say an ownership of rights over land, rather than ownership of the land itself, the only true owner of which was the monarch under his allodialtitle. Most property ownership in common lawjurisdictions is fee simple. Allodial title in modern times vests in state governments.Statute of Uses 1535 (27 Hen 8 c 10).Statute of Uses 1535: operated to execute the use so that the beneficiary became seised of a legal estate equivalent to the estate held under the use.Cook v Fountain(1676) 3 Swans 585Lord Nottingham LC (1673) eventually enforced a second use (“trust”) and his decisions established the Trust along modernlines: Cook v. Fountain (1676) 3 Swans 585.Topic 13 – Express Trusts
Equity & Trusts 70517PART 1 – INTRODUCTION TO TRUSTSB.Elements of a TrustThe Four Indicia – Essential Elements of Trusts:(i) legal orequitable title vested in Trustee;(ii) that obligation relates to the Trust propertyheld by trustee(iii) there must be a cestui que trustor beneficiary(iv) A personal obligation is annexed to the property; i.e., breach attracts proprietaryremediesin Express Trust: beneficiary has bothpersonal & proprietary remedies against TrusteeTopic 13 – Express Trusts