hello there in today's video I'm going to take a look at will trusts a will
trust trust created by a will is very very useful device if you have small
children or if you have somebody who perhaps has a disability or if you are
looking after somebody who is perhaps aged or elderly and you want to create a
trust for them but it's particularly useful in circumstances where you have
minor children so what is it shows the trust is essentially an equitable
obligation binding a person called a trustee to deal with the property over
which he has control this is trust property for the benefit of
beneficiaries so you've a trustee trust property and you have beneficiary a
trust can be inter vivos ie created during the lifetime of a person or it
can be a will trust in other words it kicks into operation when the person who
has created a will passes away there are three certainties required to have a
legally constituted trust the subject matter of the trust must research that
is the property the objects the beneficiaries must be certain and the
words used by the testator must have been an imperative show his or her
intention to create an obligation or create trust the words like which hope
desire may cause the choice to fail as and not sufficiently imperative there
may be sufficient in the circumstances but it will depend on the circumstances
to show what the test errors at clear wishes where all the requirements for
invalid trust well where the Trust property is land I real property the
trust must be evidenced in writing that's not a problem obviously if you
create a will if a trust is a will host it must comply then with a succession
act 1965 because it must be invalid with the certain basic requirements set out
in the succession act of 1965 certain trusts will fall on our fail on the
grounds that are contrary to public policy and trust will fail also on the
grounds of fraud mistake when you influence duress or misrepresentation
these trusts will fail if it can be shown that you know fraud or mistake or
undue influence etc has occurred there are different types of trust one trusts
which arise by operation of law to statutory trusts the courts for example
in family law proceedings can order the property held by one spouse should be
placed in settlement or trust for the other spouse and or for children there's
a trust for sale this is her trusty is basically given up given property
untrust with the power to sell or postpone its sale as they see fit
ultimately there will be beneficiary or beneficiaries but the trustees are given
the property on trust and they have the power to seller postpone the sale they
decide in other words when the property will be sold there is a discretionary
trust this gives gives the trustees discretion to give the property as they
see fit to members of a particular class or at a particular time of their
choosing but they ultimately because it is a discretionary just they have the
discretion as to when the property is handled over there's a protective trust
this might be useful for the benefit of a family member because it will have a
condition or a restriction attached for example the income to make for life when
if you sort of betting shops or stays off trains then the parties towards
trust so there's a testator or a settler if it's not a will show so it was an
inter vivos trust a lifetime just created during the life of somebody then
it'll be a settler if it's a will trust it will be a testator give a trustee
that's the person persons to whom the property is given legally and then
there's the ultimate beneficiary trustees are legal owners of the Trust
property and they have legal title
beneficiaries have equitable title and the trustees must carry out the terms of
the trust so in the will there will be a substantive trust in other words the
wishes or desires or direction of the testator the trustees must carry out
those terms completely constituted trust is one that has been validly declared
this is not a problem obviously in a willing because it'll be saying I place
this property or give this property to these trustees to be held in
just for the beneficiary or for the benefit of whoever and the title to the
Trust property has been transferred to the trustee so validly or the completely
constituted trust where the trust has been declared and the property
transferred to the trustees it's a good idea to have at least two trustees but
you could have as many as you want if trustees are unwilling or unable to act
and the court can appoint trustees the child inherits real property or land
there's no trustee appointed in the will then the personal representatives we
come or will be trustees pursuant to section 57 of the succession act 1965
completely constituted trust can be enforced by a beneficiary the duties
then and powers of atrocity the duties and powers arrived arise from statues
and non statutory duties so the usual powers given are the power and jury to
collect and preserve the assets the power to invest the jewelry not to make
a profit from the choice for example the bachelors property to be impartial
between beneficiaries and to account for and distribute the assets and keep
proper counts the trustees powers as I said derived from the trustee deed in
other words the testator will decide what powers they have and can give give
you know very very wide-ranging very wide sweeping powers and statute and
will give power of the trustees as well
then we have the some further points beneficiaries can act collectively to
terminate a trust a trust is not a legal entity per se so cannot enter into
contracts or hold assets or carry out other legal formalities the people who
can enter into the contract or any contract on behalf of trust are the
trustees contracts entered into by a trusted therefore not legally
enforceable
a trustee Candace Liam in other words in the most he doesn't have to work but if
he does accept the job we cannot claim a trustee can be removed in accordin to
the terms of the trust or if all of the beneficiaries agree discretionary trust
the discretion is just his useful quarter are young children testator
wants to postpone perhaps mainstream chapel acquisitions tax is another
circumstance where a discretionary trust can be useful the testator may also want
to adopt a wait-and-see approach to see how beneficiaries turn out a beneficiary
does not have an absolute right to property with a discretionary trust he
only has the right to be considered by atrocity because ultimately is the
discretionary trust trust fund trustees and beneficiaries must be set out in the
will then the substantive trust must be defined so that is the actual directions
from the testator trustees have discretion some beneficiaries may get
more than others then we have a trust for sale so these are under an
obligation to sell invest the proceeds and hold the proceeds on the terms of
the original trust so that could be for example in relation to a valuable piece
of land or a house of Allah or the property and it's ultimately the
beneficiaries are one of your children it puts the trustees in control of the
timing of any sale of the Trust property and they cannot be forced to sell even
if a beneficiary watch them to do so
there's a settled land I trust the settled and activating eating to define
the settlement of land as we're real property is held by a succession of
interests or where a miner has an interest in property section 18 of the
2009 land and conveyancing our reform act defines such thrusts of land now it
makes reference to the settle and Act of 1882 an example of a settled and I trust
will be if to will for example says to my wife for life and thereafter to my
son Seamus this is actually a settled land I trust this is a trust
because it gives it a property in you know being held by a succession of
interest firstly to his wife and then after that after the wife passed away to
the Sun there's an interesting position or possession or fixed trust this means
that the interests of various beneficiaries are fixed at the time of
the creation of the trust so there's no discretion it's useful for creating an
immediate interest in possession for example giving somebody a life interest
like the lady we saw in the last slide there it's useful when you want to
provide clarity as to who will get thrust property at a fixed time in the
future it's useful to allow our testator to postpone the best thing when interest
or till a beneficiary rates reaches a certain age for example 18 or 21 or 25
and if is useful for avoiding discretionary trust tax provisions in
other words it's not discretionary so discretionary trust tax would not apply
taxation then a new legislation well my advice to you certainly is if you're
thinking about creating a trust they can be complex in terms of Taxation
implications so in we very advisable to get specific advice in relation to any
proposed trust land and conveyancing Law Reform Act of 2009 has updated the law
in relation to trusts it sets out the powers of trustees of land the
procedures for resolution of disputes jurisdiction of the courts to vary and
make other orders in relation to trusts and offers protection for purchases of
trust land my name is Terry Gary I'm a solicitor and enfield County Meath if
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watching