Please enable JavaScript.
Coggle requires JavaScript to display documents.
Trust creation (Incomplete constituted trusts (If the settlor fails to…
Trust creation
-
Trusts may be classified by the way in which they are created and/or constituted. It is widely acknowledged that there are four modes of creation
-
-
-
-
-
-
Express trusts
A trust that is created intentionally by the settlor during their lifetime (inter vivos) or a trust that comes into existence upon the death of the settlor as result of their will may be referred to as an express trust
The majority of trusts in offshore jurisdictions are express trusts created when a deed of settlement made between the settlor and the trustee is executed or when the settlor transfers assets to the trustee who then executes a Declaration of Trust
Another way of explanation is that an express trust has been constituted when all the three certainties are in place, when all the trust documentation has been completed by all the necessary parties and the trustee has received the initial assets of the trust
-
Implied trusts
A trust that arises from the unexpressed and presumed intentions or is enforced by a court as a result of surrounding circumstances
For example if an individual purchases an asset in the name of another individual, there is a presumed intention that the purchaser holds that asset in trust for the other
-
The favoured or usual method is by an express trust whereby the settlor transfers legal assets to a trustee for the benefit of named beneficiaries. A trust deed will be completed by the settlor and the trustee setting out the terms of the trust
It could be said that a trust could be formed by an oral statement and that a trust deed is not necessary to constitute a trust, it is normal practice, especially in offshore jurisdictions to ensure that one is in place
-
-
-