chapter  1
26 Pages

DEVELOPMENT AND NATURE OF TRUSTS

NATURE TRUSTS

The law of trusts was developed by the Court of Chancery in England from medieval times. The medieval forerunner of the trust was the 'use', which arose whenever land was conveyed to A on A's undertaking to hold it to the use and benefit of B. Instances where land might be conveyed to A to the use of B were: (a) where B, the beneficial owner of land, was about to go abroad on a

crusade, it would be necessary for the land to be held by another person on his behalf, who would perform and receive feudal services;

(b) where B was a community of Franciscan friars who were prohibited by their vows of poverty from holding property; and

(c) where B was afraid of forfeiting his land on account of conviction for a felony, or of losing it to his creditors.