TRUST

Equity and Trust

Table of Contents

Introduction1

Discussion2

Background2

Case A3

First Scenario3

Bare Trust4

Interest in Possession Trust4

Discretionary Trust4

Mixed Trust5

Second Scenario5

Third Scenario6

Case B7

Case C9

References12

Equity and Trust

Introduction

Trust and equity are two significant factors in the English law of property. Before going in the details on the law of property, the terms trusts and equity should be very clear so that the law can be understood properly. Basically what is trust? A problem arises in presenting a simple and undemanding response to this because it looks like that there is not a unique concept of trust.

However, a series of similar concepts and ideas of trust can be found which are on various occasions refereed to as trust. In simple and straightforward words, the trust comes in diverse sizes, shapes along with various features. It is the flexibility, bendiness and diversity that assist to make trust so adaptable and describes why it plays such a significant role in the English Law (Codling, 2012).

Equity is a broad ranged concept which appears in many forms in all the ancient books as well as in laws. Here the term equity is very narrowed down and précised only to the English Law and a particular branch of it. The English law is mostly said or referred as the Common Law. Equity, in the Common law is considered as a set of legal principles that enhance the strict rules of the law where there application operates ruthlessly.

In the context of the Common law and the property law of the United Kingdom, both the trust and equity are considered and followed very strictly. The judges can use the equity law to make wise decisions in the cases and can conclude proper results. From the early centuries to the present time, both the equity and trust are vital characteristics of the English law or the Common Law.

Discussion

Background

The background of equity and trust are regarded by their persistent rise and fall between the competition and compatibility with the English or Common Law. Equity is said to alleviate the obstinacy of common law, which allows the courts to employ their tact and apply righteousness in compliance with the natural law. The equity was incomplete by procedural and substantive rules but at present it is technical aspects are focused. For its completeness, twelve “vague ethical statements” are made which are known as the “Maxims of Equity” and they complete the application of the equity in the present law.

In the English or Common law, trust is a relationship in which property that is, personal, real, tangible or intangible, is held by one party for the benefit of the other party. The concept of trust arises predictably when a property is transferred by a party to another party for the assistance of the third party. In this case it is possible for the legal owner to generate a trust of property without transferring it to somebody else and simply proclaim that the property from now on is held for the assistance of the beneficiary.

The English Trusts Law is the foundational and original law ...