Land x grants his fee simple estate to a for life and

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land X grants his fee simple estate to A for life and then B and his heirs, A has a life estate in possession and B has a fee simple in remainder. 5 6 • A future interested may be vested or contingent 7
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8 Vested interest : A makes a gift “to B for life, then to C”, gift to C is vested as it is bound to fall into possession on B’s death. 9 10 Contingent interest : A makes a gift “to B for life and then to C should she survive B” 11 * Mere expectation : may acquire a property in the future – not clear because wills can be changed. When you’re listed as a beneficiary.
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TRUSTS_______________________________________________________________ A trust effects a split in the legal and equitable ownership of property. The law recognises one person as the owner ( a nominal owner – right to administer but not benefit ) Equity recognises another person as owner (the beneficial owner) Both have a proprietary interest But with different spheres of enforceability As between themselves, the legal owner ( trustee ) holds the property for the benefit of ( on trust for ) the equitable owner ( beneficiary ) – fiduciary relationship. o Trustee must not end up in a conflict of interest. And must also be accountable for profits that are generated form the property. ENFORCEABILITY - ENFORCEABLE AGAINST ALL – except for a bona fide purchaser for value without notice of the beneifical ownership. Creation of Trusts: Express____________________________ The express trust is the most common kind of trust It is created by an expressed creation to create a trust The person that creates the trust is the ‘settlor’ Two ways that someone can set up a trust: o One person transfers property to another to hold it on trust - this process usually involves a trust deed Or o A person declares him/herself to be the trustee of property For ‘real’ property – must be in writing (PLA s.53) o This may include a will. Creation of trusts: Operation of law_________________________ Presumed or imposed by a court (equity or be a court that practices in equity) Constructive trust A CT arises in favour of a purchaser or may be imposed whenever it would be unconscionable for someone to retain the beneficial interest in property o Eg . When there is a specially enforceable contract for the sale of land ( Lysaght v Edwards ) – Topic 10 o Eg . Where there is a gift of Torrens land recognised as effective by equity – Topic 12 Corin V Patton 1990) & ( Costin v Costin 1997 ) Constructive in the sense that the court is constructing the trust for the parties involved.
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Resulting Trust A RT arises where the title holder of real property is a purchaser who has not provided all of the purchase price of the property. Thus, the title holder will be deemed to hold the property on trust for the person who provided the money . o Property B o Eg. If you and a friend both put 50% each towards the purchase of a property and the property only goes in my name. I am the legal owner but the resulting trust says that you must look at the contributions and based on that decide the ownership. Resulting trust would say that my friend and I own 50% each of the property.
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