equitable rights to others or terminate the trust only if they are “SuiJuris” i.e. all the beneficiaries are entitled to trust property and theyare major and of sound mind. In “Saunders v. Vautier”, V was toget the capital and accumulated income of the trust at the age of25. However, he claimed it at the age of 21. It was held that sincehe was the sole beneficiary, he had the right to terminate the trustand get the property.e.)Trust Property –It has to be tangible and capable of beingtransferred e.g. land, chattels etc.f.)Inter vivos or Will –Inter vivos trusts are created during the life ofthe author by a non testamentary document or even verbally. Andby Will means that a trust was created after the death of the authorby the written, attested and witnessed testamentary documents i.e.will or codicil.IV.)Reasons for Forming a Trust:a.)Tax Avoidance –Trust property ceases to be owned by the Settlor,thus, avoiding taxes that otherwise would have been payable.b.)Secrecy –A Trust need not be registered. Thus, avoiding unwantedpublicity, for instance, in raising of illegitimate children.c.)Protection againstspendthrifts –Trustees can protect familyfortunes being frittered away by spendthrift beneficiaries.d.)Protection against economic instability –By using an offshoretrust, worldwide investments can be made free from the economicrestrictions imposed by any particular country.e.)Long Term Planning –It allows distribution of wealth even afterdeath in precisely the same manner as wished.f.)Holding property –A minor may not be able to hold property in hisown name but a Trustee can often hold it for his benefit.g.)Promoting causes and charities –A trust can provide the legalframework and administrative organisation to achieve charities.h.)Management planning –Companies can provide pension schemesand benefit plans with their employees as class of beneficiaries.i.)Organising collective investments –A Trust can serve the basisof agreement between several people wishing to make jointinvestments.
Introduction To Trusts5j.)Protection of assets –Assets can be placed into trust tosafeguard the interests of a beneficiary, such as the inheritance of adaughter being sheltered from claims if she divorces her spouse.k.)Clubs/Unincorporated Association..