equitable rights to others or terminate the trust only if they are Sui Juris ie

Equitable rights to others or terminate the trust

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equitable rights to others or terminate the trust only if they are “ Sui Juris ” i.e. all the beneficiaries are entitled to trust property and they are major and of sound mind. In “Saunders v. Vautier” , V was to get the capital and accumulated income of the trust at the age of 25. However, he claimed it at the age of 21. It was held that since he was the sole beneficiary, he had the right to terminate the trust and get the property. e.) Trust Property – It has to be tangible and capable of being transferred e.g. land, chattels etc. f.) Inter vivos or Will – Inter vivos trusts are created during the life of the author by a non testamentary document or even verbally. And by Will means that a trust was created after the death of the author by 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 unwanted publicity, for instance, in raising of illegitimate children. c.) Protection against spendthrifts – Trustees can protect family fortunes being frittered away by spendthrift beneficiaries. d.) Protection against economic instability – By using an offshore trust, worldwide investments can be made free from the economic restrictions imposed by any particular country. e.) Long Term Planning – It allows distribution of wealth even after death in precisely the same manner as wished. f.) Holding property – A minor may not be able to hold property in his own name but a Trustee can often hold it for his benefit. g.) Promoting causes and charities – A trust can provide the legal framework and administrative organisation to achieve charities. h.) Management planning – Companies can provide pension schemes and benefit plans with their employees as class of beneficiaries. i.) Organising collective investments – A Trust can serve the basis of agreement between several people wishing to make joint investments.
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Introduction To Trusts 5 j.) Protection of assets – Assets can be placed into trust to safeguard the interests of a beneficiary, such as the inheritance of a daughter being sheltered from claims if she divorces her spouse. k.) Clubs/Unincorporated Association . .
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