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TRUSTS
TRUSTS
Refers to trusts as the duty of aggregate
accumulations that rest upon a person called a trustee.
The responsibilities are in relation to property held by
him or under his control. The property by a court in its
equitable that he will be compelled jurisdiction to
administer in a manner lawfully prescribed by an
instrument or where there will be no specific provision or
to the extent that such provision is invalid or lacking in
accordance with equitable principles. As a consequence,
the administration will be in such a manner that the
consequential benefit and advantage accrue not to the
trustee but to the beneficiaries if there be any if not, then
for some purpose that the law will recognize.
A trustee may be a beneficiary in which case advantages
will accrue in his favor to the extent of his beneficial
interest.
Therefore a trust will arise
a.
b.
c.
d.
e.
f.
TRUSTS
offers the letters of administration. They are
issued where;
Someone dies intestacy-death with no
will.
A will, but no executor appointed.
Differences
Letters of administration are a creature
of statute and can only be granted by
court.
An administrator is appointed purely
for distribution of the estate and after 6
months of distribution, they are
supposed to file a letter called an
inventory in court while a trust is much
more than that as it is about
management of the estate, distribution
and caring for the beneficiaries among
others.
Letters of administration take effect
upon a persons death while a trust
takes effect upon giving while a
settlers still alive though it can also
take effect upon death especially if a
person put it into their will.
Power of appointment
EXPRESS TRUST
A trust can either be created by will or deed with an
explicit declaration to that effect by the settler. However,
it need not make use of the word trust.
An express trust can be created by an oral direction. In
Gray v England revenue commissioners, on 1st February
1955, Mr. Hunter transferred 18000shares each of a
nominal value of 1pounds to the appellants. The
appellants were trustees for 6 settlements that Mr. Hunter
had created. On 18 February the same year, Mr. Hunter
directed his trustees to divide the above shares into
parcels of 3000 making 6 settlements. On the 25th of
February, the trustees prepared declarations of trust over
each of the 3000 shares which Mr. Hunter signed. The
commissioner assessed each one of the declarations to
stamp duty. They appealed and the issue was whether the
TRUSTS
RESULTING TRUSTS