chapter  4
22 Pages

Constitution of Trusts

We have seen that in order to create an express trust there must be an intention on the part of the settlor to create a trust, 1 and any necessary statutory formalities, such as writing, must be complied with. 2 There is, however, another requirement, viz that the trust must be completely constituted. This means that the legal estate in the trust property must be properly vested in the trustees. There are two methods of doing this:

(a) by the legal owner transferring the legal title in the property to trustees, with a direction that they should hold the property for the benefi t of the benefi ciaries; or

(b) by the legal owner of the property declaring himself a trustee of it for the benefi t of the benefi ciaries.