Basic Requirements Trusts can be created relatively informally. Some trusts are created by operation of law, generally to remedy injustice or to deal with scenarios in which a person’s obvious intention would otherwise be defeated. In order to create a valid trust, there must be certainty as to the intention of the creator (the settlor). […]
Overview There is enormous flexibility in relation to the terms on which trusts can be created. The main constraints are those of public policy. The former rules regarding the duration of trusts have been amended. It is now possible to apply to Court to vary trusts under new legislation, which commenced in 2010. Trusts allow […]
General Trusts were developed by the Courts of Equity. The essence of a trust is that it is a personal obligation imposed on an individual, the trustee, in order to protect the interests of the beneficiaries. This is a unique feature in the so-called common law jurisdictions, generally equivalent to the English speaking world. The […]
Trust Monies The best-established application of the principle of a constructive trust arises where a trustee obtains benefits using trust money. However, the principle is wider. Where the trustee takes advantage of his position, in order to obtain benefits which he would not otherwise have received, he must generally hold these benefits under the trust […]
Purpose Trust A “purpose trust” has the objective of promoting a particular purpose. It may or may not be for the benefit of a person or a class or persons. A purpose trust is enforceable if it is for charitable purposes. A limited category of non-charitable purpose trusts is recognised as valid, subject to compliance […]
Invalidation Trusts may be void by reasons of misrepresentation, fraud, undue influence and like factors, which operate on the settlor. The principles are similar to those applicable to contracts and deeds generally. Purported trusts will fail if they lack the basic minimum requirements for trusts. If they lack the requisite certainty as to objects, assets […]
Special Statutory Powers Trustees of land are given power to sell the land and reinvest the proceeds in either land for occupation or use by a beneficiary, or otherwise. The land purchase may be outside the State. The trustees of land are subject to the duties applicable to trustees generally. The powers conferred on trustees […]
Requirement for Variation Generally, a trust must be executed in accordance with its terms in order for the trustees to avoid a breach of trust. Apart from the statutory powers, a court will not, save in limited circumstances, allow performance of acts which constitute a breach of trust. Trust may need to be adapted to […]
Privileges of Charities Charities enjoy certain significant legal privileges. Charities are entitled to operate under a perpetual trust potentially accumulating funds indefinitely for the defined purposes provided in the charitable trust. The other significant advantages are in the areas of taxation. They enjoy various exemptions from rates, income and corporation tax, capital gains tax and gift […]
Role of Trustee Any person may act as a trustee although for reasons of prudence and convenience, it is best to appoint a trustworthy and experienced person. Companies or so called “trust corporations” may be formed to provide trustee services. A professional trustee will require to be paid. This will require a clear power and […]
Background in Equity The trust is very much the creation of the law of equity. Historically, equity was dispensed by the courts of equity. The courts of equity merged with the courts of law in 1877, so that equity and law are applied in all courts. In most cases, the equitable rules take precedence over […]
Categories of Charitable Trust The classes of trusts which are potentially recognised as charitable are divided into four categories; trusts for the relief of poverty; trusts for the advancement of education; trusts for the advancement of religion; and trusts for other purposes, beneficial to the community. The importance of the identification and characterisation of a […]
