Trust Law
The Law of Trusts
Consultation Times: Tuesday (9.30-10.30)
WEEK 1: INTRODUCTION TO TRUSTS
What is a Trust?
Where one person is legally obligated to hold an asset for the benefit of another person
Incomplete description; trusts can arise where one person is legally obligated to hold an asset for a specified purpose and not for an individual person…e.g. trusts for charitable purposes (don’t raise obligations to benefit any one person as such, but raise benefits for a specific purpose).
Purpose vs Person
Relationship b/w a trustee(s) (person/s or corporation(s) holding the asset) and a beneficiary(s) (person for which the asset was held) > Cestui Que Trust (Beneficiary) > anything with legal personality can be a trustee or a beneficiary (one person, a few people, class of people-descendants)
Only combination is isn’t permitted is if one person is both the trustee and a beneficiary; illogically impossible
Primary factor: involves holding of an asset of some kind. Asset=ambigious nature which suggests a wider class of objects; anything that can be held as property, can be held on trust > and what they hold are rights they hold in respect to the thing, which constitute property.
Property: constituted when people enjoy rights of exclusion and rights to use > can be bother tangible and intangible > contractual rights
This are the rights acquired by the trustee when holding an asset; but the trust encumbers those rights in some way.
Obligation of Trusteeship and Property
Rights are fettered by the obligation owed by the trustee to the beneficiary; they are obliged to act in the best interest of the beneficiary; consistent with the obligation owed to the beneficiary.
McFarlane and Stephenson: Different Possibilities
Take the view from below (Maitland), but say that the obligation of trusteeship gives the beneficiary a right that’s enforceable against the trustee; which is a right against rights. Hence, although the trustee has rights to
Consultation Times: Tuesday (9.30-10.30)
WEEK 1: INTRODUCTION TO TRUSTS
What is a Trust?
Where one person is legally obligated to hold an asset for the benefit of another person
Incomplete description; trusts can arise where one person is legally obligated to hold an asset for a specified purpose and not for an individual person…e.g. trusts for charitable purposes (don’t raise obligations to benefit any one person as such, but raise benefits for a specific purpose).
Purpose vs Person
Relationship b/w a trustee(s) (person/s or corporation(s) holding the asset) and a beneficiary(s) (person for which the asset was held) > Cestui Que Trust (Beneficiary) > anything with legal personality can be a trustee or a beneficiary (one person, a few people, class of people-descendants)
Only combination is isn’t permitted is if one person is both the trustee and a beneficiary; illogically impossible
Primary factor: involves holding of an asset of some kind. Asset=ambigious nature which suggests a wider class of objects; anything that can be held as property, can be held on trust > and what they hold are rights they hold in respect to the thing, which constitute property.
Property: constituted when people enjoy rights of exclusion and rights to use > can be bother tangible and intangible > contractual rights
This are the rights acquired by the trustee when holding an asset; but the trust encumbers those rights in some way.
Obligation of Trusteeship and Property
Rights are fettered by the obligation owed by the trustee to the beneficiary; they are obliged to act in the best interest of the beneficiary; consistent with the obligation owed to the beneficiary.
McFarlane and Stephenson: Different Possibilities
Take the view from below (Maitland), but say that the obligation of trusteeship gives the beneficiary a right that’s enforceable against the trustee; which is a right against rights. Hence, although the trustee has rights to