Express, resulting, and constructive trusts.
Three Certainties and Creation of Express Trusts
The three certainties required to create a valid express trust, and the differences between fixed interest and discretionary trusts
Formalities and Constitution of Express Trusts
Legal formalities for creating trusts, constitution of trusts, secret trusts, and exceptions to the beneficiary principle
Beneficial Entitlement and Trust Types
Fixed interest trusts, discretionary trusts, life interests, and the rule in Saunders v Vautier
Charitable Trusts and Non-Charitable Purpose Trusts
Charitable purposes, public benefit, non-charitable purpose trusts, cy-près, and Charity Commission powers
Resulting Trusts
Presumed resulting trusts, presumption of advancement, Quistclose trusts, and the distinction between resulting and constructive trusts
Trusts of the Family Home and Proprietary Estoppel
Common intention constructive trusts, quantifying shares, and proprietary estoppel
Liability of Strangers to the Trust
Knowing receipt and dishonest assistance — when third parties can be liable for breach of trust
Fiduciary Relationships and Obligations
Nature of fiduciary relationships, key duties (no profit, no conflict, no purchase of trust property), and remedies for breach
Trustees — Appointment, Powers and Duties
Appointment and removal of trustees, statutory duty of care, investment duties, and key powers
Trustees' Liability and Protection
Breach of trust, measures of liability, trustee protection, limitation periods, and variation of trusts
Equitable Remedies and Tracing
Equitable remedies (injunction, specific performance, rescission, rectification, account of profits) and tracing in equity
Try before you buy
Real SBA questions from the Trusts Law bank, with the full explanation. The paid bank covers all 11 topics and difficulty levels.
A woman signs a deed transferring her portfolio of listed shares to her solicitor. The deed states that the solicitor is to hold the shares and their income for the woman's two nieces, aged 10 and 12, in equal shares until each of them reaches 25. The solicitor is registered as the holder of the shares and pays the income towards the nieces' school fees. Neither niece paid anything for her interest, and the woman reserved nothing for herself.
On what basis, if any, do the nieces have interests in the shares?
A man transfers his buy-to-let flat to his sister and asks her to hold it for his young daughter until she reaches 21. The sister is registered at the Land Registry as the proprietor. She collects the rent, pays the outgoings and keeps the balance in a separate account for the daughter. The daughter is now 12. The man has since died, and the sister continues to manage the flat in the same way.
How is ownership of the flat divided while the daughter is under 21?
A woman's will leaves the residue of her estate to her two trustees "to be divided equally between my three nieces". One niece has married a wealthy man and has no need of the money. The trustees think the other two nieces would benefit far more and propose to pay the whole residue to them. Those two nieces, who are adults, have written agreeing to that course. The wealthy niece has not been asked.
May the trustees pay the whole residue to the two nieces they have chosen?
A man buys a flat with his own savings but, because he is working abroad when the sale completes, asks for it to be conveyed into his brother's sole name. Nothing is said or written about how the flat is to be held. The man pays all the outgoings and stays there whenever he is in the country. Years later the brother refuses to transfer the flat, saying that it is his because no trust was ever declared and nothing was signed.
Does the absence of any declaration of trust defeat the man's claim to the flat?
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