EQUITY & TRUSTS

Equity & Trusts

Equity & Trusts

Part A:

Tamsil transferred his holiday villa, “Oakhouse”, and 200 shares in B.A. to Pat and James to hold upon trust for Maya, absolutely. Explain the formalities required to implement the following alternative directions and analyse the effect of the transactions. Maya orally directs Pat and James to transfer their legal title to Oakhouse to Ben intending to release her beneficial interest at the same time who has the legal authority to manage money or property on behalf of another person. The fiduciary relation is founded on trust and confidence invested by all in the integrity and fidelity of another person. Such a relationship arises when one person depends on or is especially vulnerable to the actions of another, resulting in an uneven distribution of power and control in the relationship. The relation can be legal, social, domestic, or merely personal. A breach of fiduciary responsibilities makes the trustee liable to the beneficiaries for any damage caused by such breach (Ostrower, 2002).

Maya orally declares herself trustee of her interest in Oakhouse for Linda, absolutely. As she has a fiduciary duty to the beneficiary or beneficiaries. A fiduciary duty requires one to subordinate all personal interests while acting for the benefit of another person. It is the highest standard of duty implied by law. Specifically, a fiduciary duty includes acting in good faith, disclosing information in all matters relevant to the trust relationship, loyalty to the beneficiary, obedience to the terms and instructions of the trust agreement, due care in making decisions, and acting for the express benefit of the beneficiary.

Maya orally contracts with and receives £500,000 from Sam for all her interest in the shares and the villa. Maya subsequently decides not to carry out the contract because generally, a trustee's duties are to protect and preserve the trust property and to ensure that the property is used solely for the benefit of the beneficiary. Use of the property must be in accordance with the directions contained in the trust agreement. A fiduciary relation is a very broad term including both technical fiduciary relations and those informal relations that exist whenever one person trusts in or relies on another. Trusts can be used to shield assets from lawsuits and creditors. The fiduciary relation is founded on trust and confidence invested by one person in the integrity and fidelity of another person. Such a relationship arises when one person depends on or is especially vulnerable to the actions of another, resulting in an uneven distribution of power and control in the relationship. The relation can be legal, social, domestic, or merely personal. A breach of fiduciary responsibilities makes the trustee liable to the beneficiaries for any damage caused by such breach (Ramjohn, 2005).

Part B:

In 2007, James made his will by which he left all his 3 houses in Cornwall and his shares in BP plc to his wife, Fiona and his son David, jointly “upon trust as I have previously indicated to you” James informed ...