What is the trustee in regards to the ownership of the property?
The trustee is the nominal owner, the benefits will be saved up for/passed to ben's who own the equitable (beneficial) interest. To the outside world, trustee owns trust property
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What are the beneficiairie's proprietary rights?
Right in the property held in trust as opposed to a right to claim compensation.
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What happens if the trustee dies?
The trust property will not pass to the trustee's heirs, still held for beneficiaries of trust
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What happens if the trustee goes bankrupt?
A court may declare a person bankrupt if he/she has sufficient money to pay his/her debts as they fall due
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What is insolvency?
General term for being unable to pay debts and law dealing with this
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What is bankruptcy?
Legal process relating to person who can't pay debts
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What is liquidation?
Equivalent process for companies that cannot pay debts
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What is a liquidator?
Deals with liquidation
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What is dissolution of company/ winding up?
Company removed from register of companies
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What is a personal claim?
For compensation, claimant is effectively an unsecured creditor
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What is a proprietary claim?
To recover property, claimant has priority over creditors
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What are asset protection trusts?
Trusts in business
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What happens if the trustee transfer trust property to another in breach of trust?
Recovering trust property from third parties
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What is the rule for recovering property from third parties?
A beneficiary can recover trust property from anyone who receives it in breach of trust except a bona fide purchaser for value without notice of the equitable interest = Equity's darling
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What does bona fide mean?
In good faith
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What does purchaser for value mean?
Has given valuable considertion
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What does it mean without notice that it was trust property transferred in breach of trust?
The purchaser has neither actual knowledge nor notice of the existence of the trust
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What is constructive notice?
Knowledge he would have acquired had he made the enquiries a reasonable purchaser would have made
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What is imputed notice?
Knowledge of his agent such as a solicitor
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What does a beneficiary get if he is entitled to the capital?
Capital = asset held in trust
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What does a beneficiary get if he is entitled to the income?
Income = regular recurring receipts arising from the capital
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What does a beneficiary get if he has a vested interest?
Beneficiary exists and satisfies all conditions
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What does a beneficiary get if he has a contingent interest?
Conditional upon something happening, or if beneficiary not yet in existence
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Other cards in this set
Card 2
Front
What are the beneficiairie's proprietary rights?
Back
Right in the property held in trust as opposed to a right to claim compensation.
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