Equity and Trusts
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A trust is a relationship where a settlor is
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This person (or persons) is/are
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The trustee holds property
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The trustee must act in the
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Once the trust is set up, the settlor no longer has any right in the property. The trustee has a legal interest, and the beneficiary an
Beneficial Interests
Contingent Vested In Possession In Remainder Absolute Limited
A condition is available now before beneficiary is The interestmust be satisfied (unconditional) entitled
Enjoying the benefit of the trust at present Will receive the trust fund after beneficiaries death
The interest amounts to the capital of the trust The interest is limited to the income from the trust
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A trust may be ended provided that:
All beneficiaries are of legal age and sound mind (sui juris) Are Saunders that the trust should be ended. in agreement v Vautier [1841] 4 Beav
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Property
Personal Property Real Property
Chattels Land Freehold (jewellery, personal items) Choses in land is not included. Leasehold action (debts, life assurances, copyrights) Leasehold Land
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Transfer of Property
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Milroy v Lord [1862] 4 De
Gifts, Trusts and Wills
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Gifts, Trusts and Wills in Context
Inheritance tax applies to all property inherited over a value of 325,000
The charge above the nil rate band is 40%
Gifts are Potential Exempt Transfers (PETs) and if the donor survives more than 7 years after the gift was made there is no inheritance tax.
Creation of a lifetime trust is subject to a 20% inheritance tax if the 4/29/12
Gifts
To make a valid gift, three conditions must be met:The donor must have the necesssary mental capacity to make the gift The donor must have the intention to make the gift (expressed in words or conduct) The donor must ensure there is certainty of subject matter and objects
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Validity of Gifts
A gift may fail if one of the conditions in Milroy v Lord has not been met Turner LJ made it clear that equity will not rescue improperly made gifts by creating a trust The Every Effort test applies, it requires that the donor has done everything in his power to transfer the property beyond recall. Re Rose [1952] Ch 499
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Transfer of Shares
Outside CREST
The CREST System Computerise d PLCs only Electronicall y recorded only No need for 4/29/12 STF
Share Certificates in paper format All Ltd companies, some PLCs Shareholder is
The Rule in Strong v Bird
An exception to the rule equity will not perfect and imperfect gift Four conditions must be met:1.
Intended as immediate gift Gift is invalid due to failure of a formality The intention to make the gift must have remained until the death of the donor The donor dies, and the donee is one of the PRs for the donor. The ownership is now vested in the donee and the gift is complete.
2.
3.
4.
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Strong v Bird [1874] LR 18 Eq 315
Creation of a Trust
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Whos Who
Lead Jim Dee Mavis Doug Contact information Jim@company.com Dee@gcompany.com Mavis@company.com Doug@company.com
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Working Toward Mastery
Achieve Mastery
Projects Worked On
Get Experience d Get Familiar
Time Spent 4/29/12
Doing Your Best Work
Working from home Working offsite Technology requirements
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Case Study
Jeremy
His first day Mistakes made Successes achieved The moral of the story
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Discussion
What we can learn from Jeremy Best practices Take-aways
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Summary
Define your challenges
Technological as well as personal
Set realistic expectation
Mastery is not achieved overnight
Keep your eye on the goal
Mentorship programs
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Resources
<Intranet site text here> <hyperlink here> <Additional reading material text here> <hyperlink here> This slide deck and related resources: <hyperlink here>
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Questions?
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Appendix
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