EQUITY AND TRUST LAW CASE STUDY

Equity and Trust Law Case Study

EQUITY AND TRUST LAW CASE STUDY

The case of the Margot and Gerry is a case, which can be handled under the trust law of England. In the common legal systems, in UK, a trust can be defined as a relationship in which a person or organization would have the responsibility to handle a particular property, which could include tangible & intangible property, for the gain of another person. A settler, who is also called “Grantor”, trusts a part or all of his property to the people of his own choice, and they are called “Trustees”, establish a trust. (Oakley 1996)The trustees have a lawful title to the property of the trust property; however, they are compelled to keep the property for the benefit of one or more beneficiaries of the trust, which have been specified by the grantor, and who holds the equitable title to the property. The trustees of the property owe a fiduciary obligation to the beneficiaries of the trust, who are the legal and the beneficial owners of the trust. In our case, Tom and Babra were the trustee of the trust, which was created Alixes. The beneficiaries of the trust were Margot and Gerry, and it was the responsibility of Tom, and Babra to look after the property of the trust after the death of Alexis, until Margot turned to the age of 30 years.

A trust is normally regulated by the terms and conditions of the document of the trust, which is normally written & is at times, set out in written form. The local laws govern the terms and conditions of the trust, and a trustee has to follow the document of the trust and the local laws as well, when he is running the trust. (Hudson 2003)

There are a number of types of trust; however, the trust that was established by Alexis was the Dynasty trust. Dynasty Trust, which is called a “Generation skipping trust”. It is a kind of trust, in which a person passes down his assets to his grand-children, instead of his own children. The children of the person, who has established the trust, could not take any title to the assets. This allows a settlor to keep away from the taxes, related to the estate, which would be applied had the assets were transferred directly to his /her children. (Mitchell, Hayton, and Matthews 2006)In this case, Alexis created a trust, in which she left her house, a handsome amount of cash, and shares in trust for her grandchildren.

The property of any kind could be held on trust; however, the assets with growth potential are usually placed into a trust, for estate planning and tax exemption benefits. There are a numerous uses of a trust. A person may create a trust during his life, or even after his life through a will. (Mitchell, Hayton, and Matthews 2006)

We can view a trust as a general form of an organization, where the ...