re hay's settlement trust case summary

Appeal from - Re Pauling's Settlement Trusts (No.1) CA 29-May-1963. A non-exhaustive discretionary trust is one where the trustees are given a discretion as to whether or not to distribute the property (either income or capital). Moreover the trustee in bankruptcy is not entitled to claim funds paid to third parties (such as tradesmen and hoteliers) in discharge of obligations bona fide undertaken by the potential beneficiaries. Intangible property, by its very nature, does not require segregation. Summary of cases, statutes, definitions and main principles of "Equity & Trusts Law" during the course at University of Law (College of Law) , UK. Indeed a trust under which the settler retained control would be a charade. By the end of this chapter you should be able to: define a discretionary trust, distinguish it from a fixed trust and classify discretionary trusts, contrast a discretionary trust with a power of appointment, appreciate the individual and collective interests of objects under discretionary trusts and powers of appointment, understand a protective trust under s 33 of the Trustee Act 1925. Since Lambe v Eames,[10] the courts have instead taken the approach that the circumstances and the reading of the statement as a whole are the factors, and that no particular words will impose a trust on their own. The settlor has made provision by declaring alternative beneficiaries in the event of the failure to exercise the power, for example 50,000 is transferred to trustees to distribute the income for a period not exceeding 15 years in favour of such of the relatives of the settlor as the trustees may decide in their absolute discretion. Accordingly, the existence of such administrative powers does not create discretionary trusts but is consistent with both fixed and discretionary trusts. In the case of private trusts, the general rule is that where there is more than one trustee they must, in the exercise of their functions, act unanimously. Lord Denning stating "any conceptual uncertainty" was "cured by the Chief Rabbi clause". A special power of appointment confers on the trustee an authority or a duty to distribute the fund in favour of a specific class of objects, such as the children of the settlor. In the case of settled land the duty is imposed on the life tenant as well as the trustees. This is a Premium document. 0000002037 00000 n On the other hand, family ties (such as children, siblings, and so on) are rightly identified as conceptually certain because the members can be identified with recourse to a straightforward family tree. Info: 2555 words (10 pages) Essay He, his wife and his adult son brought a claim against his sister, Mrs Pearson, and her co-executor Mrs Walker, as trustees of a discretionary will trust declared by their mother's will. Where fixed trusts are concerned, a court should be able to rule with certainty as to who are the intended trustees and beneficiaries. The sensible logic behind this decision is that an obligation to carry out such a survey could itself run down the trust fund through expenses, and thus defeat the object for which it was intended in the first place. The decision avoided the ridiculous prospect that such potential beneficiaries could prostrate themselves before a court emphasising their attachment to the settlor in order to enrich themselves. They are not beneficiaries but, like the objects of a discretionary trust, are potential beneficiaries or have a . Discretionary Trust: Trust where the trustees have the discretion to choose which, of a defined class or group, they choose to apply the income or property of the trust to.

How To Convert String To Float In Machine Learning, Can Game Wardens Come On Private Property, How To Whitelist Ip Address In Fortigate Firewall, Noblesville High School Football, Articles R