Trusts Law Essay Example | Topics and Well Written Essays - 2500 words

Trusts Law - Essay Exampler to to the full understand the put and its principle application it is necessary to know what a trust is, the different types of trust and the specific requirements for the creation of a trust.A trust can be either express or implied.3 The express trust entails a purposeful creation while the implied trust occurs by operation of natural integrity in cases where an unconscionable outcome would occur.4 The implied trust can be either constructive or resulting.5 The resulting trust occurs where property transferred reverts to the settlor or his/her estate. A resulting trust can also be established to fill a gap in ownership or dispose of surplus of trust funds after the dip of the trust property.6 Quite often a resulting trust follows from a trust which is settled by rightfulness of a condition precedent which fails.7A resulting trust whitethorn also be implied by law where it is necessary to interpret and give effect to the settlors intention.8 In such a case, the settlor of the property is presumed to be the equitable owner of the property 9. When property is purchased in the name of a ternary party this may obviate such a presumption. For instance, an individual purchases stock and directs the vendor to transfer the stock to a third party. It is naturally presumed that the stock is held upon trust for the purchase of the stock.10On occasions when a trustee abuses the confidence reposed in him by realizing an unauthorised profit derived from the trust property, or becomes unjustly enriched at anothers expense, the lawcourt may impose a constructive trust on the party who acted with impropriety.11In Broadman v Phipps 1967 2 AC 46 the court imposed a constructive trust in a fleck where an attorney in the course of representing a trust happened to come across some confidential entropy which he used for the purpose of acquiring company shares that were partly owned by the trustees. The company did closely and made significant pr ofits as a result of the