Unit 1 E Trusts
Unit 1 E Trusts
Unit 1 E Trusts
- An arrangement
- In which ownership in property of one person
- Is made over/bequethed by a trust instrument
- To another person to administer according to the trust deed in favour of the
beneficiaries or the stated object(ordinary trust) OR
- To the beneficiaries designated in the trust deed but under the control of another
person to administer according to the trust deed in favour of the beneficiaries or
the stated object(bewind trust)
Defining Trust
• Trust consists of cash or other assets which
are administered & controlled by a person
acting in a fiduciary capacity, where such
person is appointed under a deed of trust or
agreement or will of the deceased person.
Parties to a business trust/trading trust
• Founder, settlor or donor- chooses how to establish a trust
• Appoints beneficiaries, place assets in trust & nominate a trustee
• Trustee- one who administer trust after his appointment & controls
assets in his official capacity
• Beneficiary- no trust can be established without a beneficiary, in
case of discrepancy regarding identification of beneficiary court
can declare trust valid or void.
• Court can appoint trustee where none was appointed or declined
Historical evolution of the law that governs trust