Equity & Trusts 70517 PART 1 – INTRODUCTION TO TRUSTS C. Species of Trust (i) Express Trusts Executed A trust is executed where the details of the respective interests which the beneficiaries are to take are specified in the instrument or declaration creating it, even if the creator has directed that a more formal settlement is to be prepared embodying those details. Executory Trust Settlor merely expresses general intention as to the disposition of the property, indicating but not finally defining the beneficial interests (ii) Trusts arising by operation of law Resulting and Constructive Trusts [ discussed earlier in this course ] Topic 13 – Express Trusts
Equity & Trusts 70517 PART 1 – INTRODUCTION TO TRUSTS D. Different types of Express Trusts (i) Fixed and discretionary Trusts Unit or fixed trusts are good where the rights of the beneficiaries to income and capital are fixed and not subject to any trustee discretion. They consist of units divided amongst the beneficiaries based on how many fixed units each beneficiary (or unitholder) owns. Discretionary trust: a species of express trust, where the entitlement of beneficiaries to income, or to corpus, or both, is not immediately ascertainable; rather, the beneficiaries are selected from a nominated class by the trustee or some other person and this power may be exercisable once or from time to time. Topic 13 – Express Trusts
Equity & Trusts 70517 PART 1 – INTRODUCTION TO TRUSTS D.Different types of Express Trusts(ii) Bare Trusts Topic 13 – Express Trusts
Equity & Trusts 70517 PART 1 – INTRODUCTION TO TRUSTS D. Different types of Express Trusts (iv) Commercial Trusts
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- Wills and trusts, Trust law, Express Trusts