Business, Legal & Accounting Glossary
To create a trust, it is necessary that the trust property comes into the hands of the trustees. Typically this is not a problem since the settlor will perform to satisfaction the steps needed to effect the transfer. Sometimes, though, either the settlor fails to do what is required of him or the steps he does take for some reason fall short. Equity does not, on the whole, seem to care very much how the legal title comes into the hands of the trustees, just so long as it does. This means that a trust which is improperly constituted may later be rescued if the trust property, by coincidence, happens to fall to the trustees. This may happen if, for example, the trustee is appointed to administer the estate of the settlor, or else if the rule in Strong v Bird (1874) is determined to apply.
See also: Imperfect Gift, Constitution Of Trusts, Strong v Bird (1874).
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This glossary post was last updated: 6th April, 2020 | 124 Views.