ACCT 002 Lecture Notes - Lecture 8: In Essence, Clean Hands, Senior Courts Act 1981
15 Sep 2020
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Define the following terms: settlor - the settlor is the creator of an express trust (as opposed to the situation with implied trusts, which are imposed by equity in certain circumstances without any need for a settlor). The settlor is important because it is, he who determines the identity of the trustees and beneficiaries, the extent of the beneficiaries" equitable shares in the trust property and the terms of the trust. Generally, the settlor will own the trust property absolutely prior to the creation of the trust. Once the trust property is vested in the trustee in his capacity as a trustee, however, the title separates, and the settlor loses all interest in the trust property. The trust is said to be constituted at this point. Once the trust is constituted, the settlor loses all interest in, and control over, the trust property and cannot reclaim it (e. g. re bowden [1936]).
