《THE MODERN LAW OF TRUSTS FIFTH EDITION》

1.INTRODUCTION1

The Trust Today1

Ⅰ.Definition of a Trust4

Ⅱ.Subject Matter of a Trust8

Ⅲ.Distinction from other Legal Concepts8

2. CLASSIFICATION OF TRUSTS17

Ⅰ.Statutory, Express, Implied and Constructive Trusts17

Ⅱ.Simple and Special Trusts18

Ⅲ.Executed and Executory Trusts19

Ⅳ.Completely and Incompletely Constituted Trusts19

Ⅴ.Fixed and Discretionary Trusts19

Ⅵ.Private and Charitable Trusts20

Ⅶ.A New Classification?20

3.EXPRESS PRIVATE TRUSTS22

Ⅰ.Capacity To Create a Trust22

Statutory Requirements for the Creation of an Express Trust23

Ⅲ.Executed and Executory Trusts41

Ⅳ.Completely and Incompletely Constituted Trusts44

Ⅴ.Certainty60

4. DISCRETIONARY TRUSTS AND POWERS67

Ⅰ.The Creation of Discretionary Trusts and Powers67

Ⅱ.The Basic Tools: Trusts and Powers70

Ⅲ.Powers of Appointment, and Other Powers and Discretions82

Ⅳ.Factors Affecting the Exercise of Powers and Discretions85

Ⅴ.Some Provisions of Discretionary Trusts88

Ⅵ.Release of Powers90

Ⅶ.The Position of Beneficiaries93

5.LEGALITY OF A TRUST96

Ⅰ.Generally96

Ⅱ.Perpetuities and Accumulations98

Ⅲ.Safeguarding Property from Creditors111

6.PROTEcrIvE TRUSTS120

Ⅰ.Determinable Interests120

Ⅱ.Protective Trusts121

7.IMPLIED OR.RESULTING TRUSTS126

Ⅰ.Purchase in Another’s Name126

Ⅱ.Joint Purchases and Vesting134

Ⅲ.Joint Mortgages135

Ⅳ.Voluntary Conveyance or Transfer135

Ⅴ.Ownership of the Matrimonial Home136

Ⅵ.Failure of the Trust or Beneficial Interest148

Ⅶ.Mutual Wills154

8.CONSTRUCTIVE TRUSTS160

Ⅰ.Constructive Trusts of Profits made by a Person in a Fiduciary Position162

Ⅱ.Stranger Intermeddling with Trust Property169

Ⅲ.Vendor of Land as Constructive Trustee174

Ⅳ.Mortgagee as a Constructive Trustee175

9.TRUSTS OF IMPERFECT OBLIGATION176

Ⅰ.“Monument” Cases176

Ⅱ.“Animals”177

Ⅲ.The Modern Rule177

Ⅳ.Perpetuity180

Ⅴ.Maintenance of Tombs by Trusts of Perpetual Duration181

10.CHARITABLE TRUSTS183

Ⅰ.Charities Act 1960183

Ⅱ.Distinctions from Private Trusts183

Ⅲ.Definition of a Charity188

Ⅳ.Classification of Charitable Trusts191

Ⅴ.The Exclusive Nature of Charity217

Ⅵ.Cy-pres Doctrine223

Ⅶ.Administration of Charities233

11.THE APPOINTMENT, RETIREMENT AND REMOVAL OF TRUSTEES243

Ⅰ.Types of Trustee243

Ⅱ.The Appointment of Trustees248

Ⅲ.Retirement260

Ⅳ.Removal of Trustees261

Ⅴ.Delegation of Trusteeship262

Ⅵ.Vesting of Property on Change of Trustee263

Ⅶ.Protection of Purchasers264

12.ACTION ON APPOINTMENT AS TRUSTEE266

Ⅰ.Disclosure Prior to Appointment266

Ⅱ.Following Appointment266

13.THE ADMINISTRATION OF A TRUST269

Ⅰ.The Trustees’ Standard of Care269

Ⅱ.Joint Acts271

Ⅲ.The Trustees’ Discretion272

Ⅳ.Duty to Account and Give Information274

Ⅴ.Directions of the Court276

Ⅵ.Administrative Powers Relating to Trust Property278

Ⅶ.Mortgaging the Trust Propetyy279

Ⅷ.Expenses279

Ⅸ.Payment to Beneficiaries280

14.DELEGATION: THE EMPLOYMENT OF AGENTS282

15.THE TAXATION OF A TRUST289

Ⅰ.Stamp Duty289

Ⅱ.Income and Capital Gains Taxation Generally292

Ⅲ.Income Tax292

Ⅳ.Capital Gains Tax295

Ⅴ.Capital Transfer Tax298

16.INVESTMENT301

Ⅰ.The General Standard of Care301

Ⅱ.Types of Investment302

Ⅲ.Trustee Investments Act 1961310

Ⅳ.Mortgages of Land319

Ⅴ.Investment Clauses323

Ⅵ.Ancillary Statutory Powers324

Ⅶ.Continuing Supervision326

Ⅷ.Insider Dealing327

17.APPORTIONMENTS328

Ⅰ.Apportionments between Capital and ncome328

Ⅱ.Other Apportionments336

Ⅲ.Apportionments Relating to Stocks and Shares339

Ⅳ.Apportionments in Respect of National Savings Certificates344

Ⅴ.Apportionments of Outgoings345

Ⅵ.Excluding Apportionments345

18.NCOME FROM THE TRUST FUND346

Ⅰ.ncome of the Trust Fund346

Ⅱ.Gifts Carrying ncome348

Ⅲ.Retention of Income350

Ⅳ.Maintenance of Infant Beneficiaries354

Ⅴ.Taxation Consequences360

19. APPLICATIONS OF TRUST CAPITAL366

Ⅰ.Expenses From Capital366

Ⅱ.Advancement367

Ⅲ.Settled Advances373

Ⅳ.Other Approcations of Capital379

Ⅴ.Appropriation381

20.THE POSITION OF A BENEFICIARY UNDER A TRUST383

Ⅰ.Control of Trustees’ Discretion383

Ⅱ.Right to Compel Due Administration385

Ⅲ.Right to Enforce Claims386

Ⅳ.Right to Terminate a Trust386

21.TRUSTEES’ REMUNERATION AND BENEFITS390

Ⅰ.Modern Commercial Remuneration Terms390

Ⅱ.Fees: The General Rule391

Ⅲ.Fees: Exceptions to the General Rule391

Ⅳ.Directors’ Fees398

Ⅴ.Commissions400

Ⅵ.Commercial Profits401

Ⅶ.Other Financial Benefits401

22.AVOIDING A CONFLICT OF INTEREST403

Ⅰ.Generally403

Ⅱ.The Execution of the Trust404

Ⅲ.Purchasers of Trust Property404

Ⅳ.Competition407

23.VARIATION OF TRUSTS409

Ⅰ.Management and Administration409

Ⅱ.Variation of Beneficial Interests411

24. EXPORTING TRUSTS427

Ⅰ.Motives427

Ⅱ.Exchange Control428

Ⅲ.Taxation429

Ⅳ.When Exporting is Proper437

Ⅴ.Methods of Exporting441

Ⅵ.Exporting Part of the Trust441

25.BREACH OF TRUST443

Ⅰ.Own Acts of the Trustee444

Ⅱ.Acts of Co-Trustees445

Ⅲ.Measure of Liability446

Ⅳ.Position of Trustees Inter Se454

Ⅴ.Limitation of Actions456

Ⅵ.If Trustee Prima Facie Liable, Obtaining Relief or Exemption from Liability460

Ⅶ.Personal and Real Basis of Remedies for Breach of Trust465

Index477