Thursday, 29 July 2010
Trusts are divided in the following main categories:
Private Trusts
Express Private Trusts
Express trusts are, as their name suggests, expressly created by the settlor. They can be created by deed, in writing, by will and, with some exceptions, orally.
The intention of the settlor must be made absolutely clear. The three certainties listed in paragraph 1 above must be present.
Resulting Trust
A resulting trust arises from the implied, rather than the express intention of the settlor. This intention can be inferred by the way that the settlor acts or behaves.
An example of a resulting trust would be where A gives money to B to buy an asset. If there is no evidence that A intended for B to keep the asset, then B is presumed to hold the asset on trust for A.
But if, in the above example, A was B’s father and A had given money to B so that B could purchase books for school, then the presumption arises that A intended for B to keep the books and therefore there is no resulting trust.
Constructive Trust
They are imposed by law independently of what anyone intended.
An example of a constructive trust would be where A gives money to B to hold for C. If B then gives the money to D and D knows that B was holding the money for C, then D will be construed as to also hold the money on trust for C.
These are trusts that arise from the implied intention of the settlor and will either be resulting or constructive trusts.
Implied Trusts
These are trusts that arise from the implied intention of the settlor and will either be resulting or constructive trusts.
Charitable Trusts
There is no legal definition of what constitutes a charity. Usually a trust that is set up for the relief of poverty, the advancement of education or religion or any other purpose that is beneficial to the community is considered to be a charitable trust. In particular they are set up for certain public purposes. They are enforced at the suit of the Attorney General acting on behalf of the state.
It is possible to set up an international charitable trust in Cyprus under the International Trusts Law.
Fixed Trusts
These are trusts where the share or interest of the beneficiaries in the trust property is specified by the settlor.
Discretionary Trust
These are trusts where the trustees may, at their discretion determine what share or interest of the trust property should go to each member of a class of beneficiaries.
Private Trusts
- expressly created by the settlor.
- can be created by deed, in writing, by will and, with some exceptions, orally
- the intention of the settlor must be made absolutely clear. The three certainties listed in paragraph 1 above must be present. The beneficiaries have enforcement powers in respect of the trust.
Express Private Trusts
Express trusts are, as their name suggests, expressly created by the settlor. They can be created by deed, in writing, by will and, with some exceptions, orally.
The intention of the settlor must be made absolutely clear. The three certainties listed in paragraph 1 above must be present.
Resulting Trust
A resulting trust arises from the implied, rather than the express intention of the settlor. This intention can be inferred by the way that the settlor acts or behaves.
An example of a resulting trust would be where A gives money to B to buy an asset. If there is no evidence that A intended for B to keep the asset, then B is presumed to hold the asset on trust for A.
But if, in the above example, A was B’s father and A had given money to B so that B could purchase books for school, then the presumption arises that A intended for B to keep the books and therefore there is no resulting trust.
Constructive Trust
They are imposed by law independently of what anyone intended.
An example of a constructive trust would be where A gives money to B to hold for C. If B then gives the money to D and D knows that B was holding the money for C, then D will be construed as to also hold the money on trust for C.
These are trusts that arise from the implied intention of the settlor and will either be resulting or constructive trusts.
Implied Trusts
These are trusts that arise from the implied intention of the settlor and will either be resulting or constructive trusts.
Charitable Trusts
There is no legal definition of what constitutes a charity. Usually a trust that is set up for the relief of poverty, the advancement of education or religion or any other purpose that is beneficial to the community is considered to be a charitable trust. In particular they are set up for certain public purposes. They are enforced at the suit of the Attorney General acting on behalf of the state.
It is possible to set up an international charitable trust in Cyprus under the International Trusts Law.
Fixed Trusts
These are trusts where the share or interest of the beneficiaries in the trust property is specified by the settlor.
Discretionary Trust
These are trusts where the trustees may, at their discretion determine what share or interest of the trust property should go to each member of a class of beneficiaries.