Equity And the Law of Trust Essay Example | Topics and Well Written Essays - 2000 words

Equity And the Law of Trust - Essay Example An express trust is created by the settlor’s conveyance of property by will or deed to a party, for this property to be held in trust for others. Creation of a trust does not require consideration. Written and formal documents are needed only for Trusts of real estate as required by the Statute of Frauds. A resulting trust is created when the intention is inferred or presumed, by a court of equity, from the terms of disposition of the property. Finally, a constructive trust results when a court of equity compels the person having legal title, to hold it for the benefit of another. A person guilty of fraudulent acquisition of title to property will be deemed by the court to be the trustee and will be ordered to hand over the property to the defrauded party. (Trust – property law-, n.d). Trusts are set up for the joint ownership of the matrimonial home, reduce amount of tax payable, provide for infants, the elderly or mentally disordered and to protect people from their vices. Sometimes the public donates money in response to some disaster or crisis and the law has to formulate a mechanism to administer the resulting fund. (Equity and the law of Trusts, n.d). In the present day world, the role of Trusts has assumed great significance. Trusts minimize estate taxes or help people who cannot manage their own assets for example minor children, disabled children or aged parents. Sometimes a trust is created to provide support and property management for a surviving spouse and minor children or for the educational purpose of children and grandchildren. Conditions of Revocable Trusts can be changed only during the lifetime of the settlor. This is beneficial for adapting to the changes taking place in tax and estate laws. Irrevocable Trusts cannot be changed, revoked or terminated once they are set up and do not provide for changes in the tax and estate laws. Some of the modern day varieties of Trusts are: Living Trusts or Trusts which are created and