LAW 2502 Lecture Notes - Lecture 2: Fiduciary, Fide, Rule Against Perpetuities
23 May 2018
School
Department
Course
Professor
ADELAIDE LAW SCHOOL LAW2502 EQUITY
David Wright
Week 2, Semester 1, 2018
TRUSTS SUMMARY (PART 1)
1. INTRODUCTION TO ALL TRUSTS
A. Introduction
The trust is perhaps the greatest invention of Equity. Trusts are extremely common in a lot of
different contexts, particularly (but not exclusively) in commerce.
B. The main uses of trusts
1. Limited interests in succession,
2. claimant priority trusts,
3. Protective Trusts,
4. Investment,
5. Trusts for Commercial Trading Purposes,
6. Family trusts,
7. Charitable Trusts,
8.Trust as a Remedy, and
9. Unincorporated Associations.
C. Origins of the Trust
Origins in the Crusades. Over time, the central feature of the use was duality of title (ie the
ownership of the property was split). This duality allowed much avoidance of feudal dues (ie tax
avoidance). There was an attempt to stop it. The attempt failed.
2. What is a Trust?
A. Introduction
So what is a trust? An easy question to which there is no easy answer.
B. Statutory definitions of ‘trust’
Does statute help to understand what a trust is? No. The question “what is a trust?” can only
really be answered by looking at things which have been called trusts by the courts and examining
their features.
C. Court’s Meaning of ‘trust’
1. Introduction
Generally, a trust is a way to hold property. It is a property holding institution. Generally, if there
is no property, there is no trust. But there are more things needed for a trust. The trust gives the
beneficiary ownership rights in the property. These rights are enforceable against any
subsequent holders of the property other than a bona fide purchaser for value of the legal interest
without notice.
2. A Trust involves a fiduciary relationship
All trustees are fiduciary but not all trustee duties are fiduciary.
3. Trust property
A. Introduction
Generally, every trust requires trust property. The trust property (also called the trust estate) may
be a legal property, or, rarely, an equitable interest (where the legal title is vested in some other
person) but, whatever form it takes, the property held must be vested in the trustee. What this
means is that trustee is usually the Common Law owner of the property and the beneficiary of the
trust is the equitable owner of the property.
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Document Summary
Trusts summary (part 1: introduction to all trusts, introduction. The trust is perhaps the greatest invention of equity. 8. trust as a remedy, and: unincorporated associations, origins of the trust. Over time, the central feature of the use was duality of title (ie the ownership of the property was split). This duality allowed much avoidance of feudal dues (ie tax avoidance). The attempt failed: what is a trust, introduction. An easy question to which there is no easy answer: statutory definitions of trust". The question what is a trust? can only really be answered by looking at things which have been called trusts by the courts and examining their features: court"s meaning of trust", introduction. Generally, a trust is a way to hold property. Generally, if there is no property, there is no trust. But there are more things needed for a trust. The trust gives the beneficiary ownership rights in the property.
