chapter  4
48 Pages

Constitution of an express trust

ByMohamed Ramjohn

A settlor may wish to create a trust by transferring the property to another person as trustees, subject to a valid declaration of trust. In this context the settlor must comply with two requirements, namely a transfer of the relevant property or interest to the trustees complemented with a declaration of the terms of the trust. The owner of the legal title to shares in a private company is the person whose details are registered in the company's books. Thus, a new transferee acquires the legal title when he is registered with the company. An alternative mode of creating an express trust is by way of a self-declaration. A settlor declares that he presently holds specific property on trust, indicating the interest, for a beneficiary. The settlor is the creator of the trust and the trustee. A gift is created when the donor transfers both legal and equitable interests to the donee.