ACCT2331 Chapter 22: Chapter 22
Document Summary
Nature of trust [p607: a trust is an equitable obligation under which: For the benefit of one or more other persons (the "beneficiaries": two broad categories of trusts: Private trusts (for the benefit of an individual or a group of individuals) Public trusts (for charitable purposes: concept is widened for tax purposes by definition of a "trustee" under s 6(1) itaa36. Trusts are usually distinguished according to their mode of creation. Express trusts" (most common): arise from an express intention to create a trust: fixed trust. A trust under which the beneficiaries" entitlements to income and capital are fixed (eg a unit trust) Beneficiary has an equitable interest in the property that is held on trust (baker v. A trust under which the trustee has a discretion as to how to distribute the trust income and capital. Trustee selects from a class of "objects" (potential beneficiaries), the persons who are to receive particular benefits under the trust.
