voluntary trust, illusonary trust for value

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NATIONAL LAW INSTITUTE UNIVERSITY

BHOPAL

VIII TRIMESTER

TRANSFER OF PROPERTY II

Project on:

Voluntary trust, Illusionary trust and Trust for value

Submitted to:

Submitted by:

Prof. Sushma Sharma Sourabh P.

Ahirwar

NLIU, Bhopal 2009

B.A.LLB 69

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TABLE OF CONTENTS

1. INTRODUCTION……………….

……………………………03

2. VOLUNTARY

TRUST……………………………………….04

3. ILLUSIONARY

TRUST……………………………………. 10

4. TRUST FOR

VALUE………………………………………. 13

5. CONCLUSION…………………………………………

……..18



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6. BIBLIOGRAPHY………………………………………

……..19

1. INTRODUCTION

In common law legal systems, a trust is a relationship whereby property (real or

personal, tangible or intangible) is held by one party for the benefit of another. A

trust conventionally arises when property is transferred by one party to be held by

another party for the benefit of a third party, although it is also possible for a legal

owner to create a trust of property without transferring it to anyone else, simply by

declaring that the property will henceforth be held for the benefit of the beneficiary.

A trust is created by a settlor (archaically known, in the context of trusts of land, as

the feoffor to uses), who transfers some or all of his property to a trustee (archaically

known, in the context of land, as the feoffee to uses), who holds that trust property (or

trust corpus) for the benefit of the beneficiaries (archaically known as the cestui que

use, or cestui que trust ). In the case of the self-declared trust, the settlor and trustee

are the same person. The trustee has legal title to the trust property, but the

beneficiaries have equitable title to the trust property (separation of control and

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http://en.wikipedia.org/wiki/Common_law


http://en.wikipedia.org/wiki/Property

http://en.wikipedia.org/wiki/Settlor


http://en.wikipedia.org/wiki/Trustee


http://en.wikipedia.org/wiki/Feoffee

http://en.wikipedia.org/wiki/Beneficiary_(trust)

http://en.wikipedia.org/wiki/Cestui_que





http://en.wikipedia.org/wiki/Property



http://en.wikipedia.org/wiki/Feoffee

http://en.wikipedia.org/wiki/Beneficiary_(trust)

http://en.wikipedia.org/wiki/Cestui_que






ownership). The trustee owes a fiduciary duty to the beneficiaries, who are the

"beneficial" owners of the trust property. (Note: A trustee may be either a natural

person, or an artificial person (such as a company or a public body), and there may bea single trustee or multiple co-trustees. There may be a single beneficiary or multiple

beneficiaries. The settlor may himself be a beneficiary.)

The trust is governed by the terms under which it was created. The terms of the trust

are usually written down in a trust instrument or deed but, in England, it is not

necessary for them to be written down to be legally binding, except in the case of

land. The terms of the trust must specify what property is to be transferred into the

trust (certainty of subject-matter), and who the beneficiaries will be of that trust

(certainty of objects). It may also set out the detailed powers and duties of the

trustees (such as powers of investment, powers to vary the interests of the

beneficiaries, and powers to appointment new trustees). The trust is also governed by

local law. The trustee is obliged to administer the trust in accordance with both the

terms of the trust and the governing law. In the United States, the settlor is also called

the trustor, grantor, donor or creator. In some other jurisdictions, the settlor may also

be known as the founder.

2. VOLUNTARY TRUSTS

A type of living trust that is created during the lifetime of the trustor, and is also

known as an inter vivos trust. In a voluntary trust, the trustor retains legal title of the

gift transferred to the beneficiary, even though the beneficiary has actual title and

possession.

A voluntary trust is also defined as an obligation arising out of a personal confidence

http://en.wikipedia.org/wiki/Fiduciary


http://en.wikipedia.org/wiki/Company

http://en.wikipedia.org/wiki/Public_body

http://en.wikipedia.org/wiki/Deed





http://en.wikipedia.org/wiki/Company

http://en.wikipedia.org/wiki/Public_body





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reposed in, and voluntarily accepted by, one individual for the benefit of another.

No consideration is made in a voluntary trust. In a voluntary trust, the recipient of the

trust gives nothing in exchange for the trust but receives it as a pure gift. This

distinguishes voluntary trusts from trusts for value, which are trusts made in favor of

purchasers and mortgagees.

Intervivos trust

From the Latin, "between the living," a gift of property from one living person to

another, as opposed to a Testamentary Trust created by a will. Also called living

trust.

An Inter vivos trust is often used synonymously with the more common term Living

trust, but an Inter vivos trust, by definition, includes both revocable and irrevocable

trust.

A phrase used to describe a gift that is made during the donor's lifetime. In order for

an inter vivos gift to be complete, there must be a clear manifestation of the giver's

intent to release to the donee the object of the gift, and actual delivery and acceptance

by the donee.

An inter vivos gift is distinguishable from a gift causa mortis, which is made in

expectation of impending death.

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1). LIVING TRUST vs TESTAMENTARY TRUST

One of the most basic classifications of trusts is whether they become effective

during the grantor's lifetime or whether they become effective only after the grantor's

death.

A trust that becomes effective during the grantor's lifetime is called a "living trust" or

an "inter-vivos trust." The term "inter-vivos" is a Latin term meaning "during life."

Most living trusts, except informal trusts such as our babysitting trust discussed

above, are generally created by a written instrument, which can be either a trust

agreement or a declaration of trust. If the trust has a trustee other than the grantor,

then the trust instrument is called a "trust agreement" because both the grantor and

the trustee must agree to the terms of the trust. However, if the grantor is the sole

trustee, then the trust instrument is simply called a "declaration of trust," since the

grantor is the only party to the trust. On the other hand, a trust that is created under a

Last Will and Testament is called a "testamentary trust." A testamentary trust, by

definition, can only become effective after the testator's death because the Last Will

and Testament does not become effective until that event occurs. Even then, the Last

Will and Testament must be admitted to probate before it - and the testamentary trust

created therein - becomes effective.

So, what's the significance of a living trust versus a testamentary trust? Other than the

fact that a living trust becomes effective during the creator's lifetime and a

testamentary trust becomes effective only after the creator's death, they both have the

four basic components discussed above. Of course, there are differences that may be

significant in certain circumstances, depending upon the specific objectives that one

is trying to achieve. For example, testamentary trusts do not avoid probate because

they become effective only after the grantor's death. Living trusts do avoid probate if

properly funded during the grantor's lifetime. Because testamentary trusts are created

under a Last Will and Testament, there are more formalities to creating - and



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changing - a testamentary trust than a living trust. Testamentary trusts are also more

public than a living trust because a testamentary trust is part of a Last Will and

Testament, which is a public document. Costs can also be a factor because a livingtrust requires a separate document, whereas a testamentary trust is part of a Last Will

and Testament.

Living trusts can be either "revocable" or "irrevocable."

2) .REVOCABLE vs IRRECOVABLE

Revocable trusts allow you to retain control of all the assets in the trust, and you are

free to revoke or change the terms of the trust at any time. With irrevocable trusts, the

assets in it are no longer yours, and typically you can't make changes without the

beneficiary's consent. But the appreciated assets in the trust aren't subject to estate

taxes.

a). Revocable Living Trusts

A Revocable Living Trust, also called a Revocable Trust or Living Trust, is simply a

type of trust that can be changed at any time. In other words, if you have second

thoughts about a provision in the trust or change your mind about a trust beneficiary

or fiduciary, then you can modify the terms of the trust through what's called a trust

amendment. Or, if you decide that you don’t like anything about the trust at all, then

you can either revoke the entire agreement or change the entire contents through an

amendment and restatement. Since Revocable Living Trusts are so flexible, why

aren’t all trusts revocable? The down side to a revocable trust is that assets funded

into the trust will still be considered your own personal assets for creditor and estate

tax purposes. This means that a revocable trust offers no creditor protection if you're

sued and all assets held in the name of the trust at the time of your death will be

subject to both state and federal estate taxes. So why use a Revocable Living Trust as

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part of your estate plan? For three reasons: 1. To plan for mental disability - Assets

held in the name of a Revocable Living Trust at the time a person becomes mentally

incapacitated can be managed by their Disability Trustee instead of by a court-supervised guardian or conservator.

2. To avoid probate - Assets held in the name of a Revocable Living Trust at the

time of a person’s death will pass directly to the beneficiaries named in the trust

agreement and outside of the probate process.

3. To protect the privacy of your property and beneficiaries after you die - By

avoiding probate with a Revocable Living Trust, your trust agreement won't become

a public record for all the world to see and read. This will keep the details about your

assets and who you've decided to leave your estate to a private family matter.

Contrast this with a Last Will and Testament that's been admitted to probate - it

becomes a public court record that anyone can read.

b). Irrevocable Trusts

An irrevocable trust is simply a type of trust that can't be changed after the agreement

has been signed, or a revocable trust that by its design becomes irrevocable after the

Trustmaker dies.

With the typical Revocable Living Trust, it will become irrevocable when the

Trustmaker dies and can be designed to break into separate irrevocable trusts for the

benefit of a surviving spouse, such as with the use of AB Trusts or ABC Trusts, or

into multiple irrevocable lifetime trusts for the benefit of children or other

beneficiaries.

Irrevocable trusts can take on many forms and be used to accomplish a variety of

estate planning goals:

1). Estate Tax Reduction



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Irrevocable trusts, such as Irrevocable Life Insurance Trusts, are commonly used to

remove the value of property from a person’s estate so that the property can't be

taxed when the person dies. In other words, the person who transfers assets into anirrevocable trust is giving over those assets to the trustee and beneficiaries of the trust

so that the person no longer owns the assets. Thus, if the person no longer owns the

assets, then they can't be taxed when the person later dies.

As mentioned above, AB Trusts that are created for the benefit of a surviving spouse

are irrevocable and, thus, can make full use of the deceased spouse's exemption from

estate taxes through the funding of the B Trust with property valued at or below the

estate tax exemption. Then, if the value of the deceased spouse's estate exceeds the

estate tax exemption, the A Trust will be funded for the benefit of the surviving

spouse and payment of estate taxes will be deferred until after the surviving spouse

dies.

ABC Trusts can be used by married couples who live in some of the states that

collect a state estate tax and the state estate tax exemption is less than the federal

estate tax exemption. For example, in Massachusetts the state estate tax exemption is

only $1 million, as compared with the current federal $5 million exemption, so in

Massachusetts the first $1 million will go into the B Trust, then next $4 million will

go into the C Trust, and anything over $5 million will go into the A Trust.

2). Asset Protection

Another common use for an irrevocable trust is to provide asset protection for the

Trustmaker and the Trustmaker's family. This works in the same way that an

irrevocable trust can be used to reduce estate taxes - by placing assets into an

irrevocable trust, the Trustmaker is giving up complete control over, and access to,

the trust assets and, therefore, the trust assets can't be reached by a creditor of the

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Trustmaker. However, the Trustmaker's family can be the beneficiaries of the

irrevocable trust, thereby still providing the family with financial support, but outside

of the reach of creditors. There are also irrevocable trusts called Self-Settled Trustsor Domestic Asset Protection Trusts that in some states, including Alaska, Delaware,

Neveda, and Tennessee, offer creditor protection and allow the Trustmaker to be a

trust beneficiary. In addition, as mentioned above, the various irrevocable trusts that

can be created for the benefit of the Trustmaker's surviving spouse or other

beneficiaries after the Trustmaker of a Revocable Living Trust dies can be designed

to offer asset protection for the trust beneficiaries.

3). Charitable Estate Planning

Another common use of an irrevocable trust is to accomplish charitable estate

planning, such as through a Charitable Remainder Trust or a Charitable Lead Trust.

If the Trustmaker makes the initial transfer of assets into a charitable trust while still

alive, then the Trustmaker will receive a charitable income tax deduction in the year

of the transfer is made. Or, if the initial transfer of assets into a charitable trust

doesn't occur until after the Trustmaker's death, then the Trustmaker’s estate will

receive a charitable estate tax deduction. Express trust. An express trust arises where

a settlor deliberately and consciously decides to create a trust, over their assets, either

now, or upon his or her later death. In these cases this will be achieved by signing a

trust instrument, which will either be a will or a trust deed. Almost all trusts dealt

with in the trust industry are of this type. They contrast with resulting and

constructive trusts. The intention of the parties to create the trust must be shown

clearly by their language or conduct.



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For an express trust to exist, there must be certainty to the objects of the trust and the

trust property. 1. Bare trust: Property transferred to another to hold e.g. for a third

person absolutely. May be of use where property is to be held and invested on behalf of a minor child or mentally incapacitated person.

2. Life Interest trust: The income from property transferred is paid to one person

"the life tenant" (e.g. a widow/er) during their lifetime and thereafter is transferred to

another person (who may take absolutely or a second life interest according to the

terms of the trust, in the second case a third beneficiary would come into play). The

trustees may have power to pay capital as well as income to the life tenant;

alternatively they may have rights to transfer ("appoint") property to other

beneficiaries ahead of their entitlement.

3. Discretionary trust: The trustees may pay out income to whichever of the

beneficiaries they, in the reasonable exercise of their discretion, think fit. They will

normally also have a power to pay out capital. They may have extensive powers,

even to add new beneficiaries, but such powers may normally only be exercised bona

fide in the interests of the beneficiaries as a whole.

4. Charitable trusts

Trusts for a purpose (as opposed to for individuals) are generally invalid at common

law however charities are an exception. Persons wishing to pass money to causes not

recognised as charitable may instead make gifts to established companies or

associations or may establish trusts or trust-like structures in jurisdictions which do

not restrict non-charitable purpose trusts.

5. Protective trusts and Spendthrift trusts

It can be established to provide an income for persons who cannot be trusted with it.

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3. Quistclose trusts in English law-Illusionary trust

Illusory trust refers to an arrangement that gives the outward impression of being a

trust, but is not in fact so because of powers retained in the settlor. The apparent

trustee has no power to deal with the property of the trust. In illusory trusts the settlor

retains so much control that, in effect, no trust exists.

A Quistclose trust is a trust created where a creditor has lent money to a debtor for a

particular purpose. In the event that the debtor uses the money for any other purpose,

it is held on trust for the creditor. Any inappropriately spent money can then be

traced, and returned to the creditors. The name and trust comes from the House of

Lords decision in Barclays Bank Ltd v Quistclose Investments Ltd (1970), although

the underlying principles can be traced back further. There has been much academic

debate over the classification of Quistclose trusts in existing trusts law: whether theyare resulting trusts, express trusts, constructive trusts or, as Lord Millett said in

Twinsectra Ltd v Yardley, illusory trusts.

Quistclose trusts have variously been considered resulting, express or constructive in

nature. An alternate explanation is given by Lord Millett in Twinsectra Ltd v

Yardley; this is that the Quistclose trust is an "illusory trust", where the apparent

beneficiary (the moneylender, for example) takes no active role. This trust is created

by the intention of either party, and is revocable at any time. The problems with this

idea are that the facts in Quistclose are not those of a normal illusory trust, and

Millett failed to consider the mutual intention of the parties and any underlying

contracts.



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1. Resulting trust

Lord Wilberforce, in Quistclose, stated that the contract gives the moneylender an

equitable interest in the loan, with the borrower holding it on resulting trust for him.

Under Wilberforce's two-stage trust, the interest in the money first goes from the

lender to the borrower (the primary trust) and then, when the trust's purpose fails,

reverses (the secondary trust). In Twinsectra Lord Millett also explained that a

Quistclose trust is a resulting trust, but held that the lender retains the interest

throughout the transaction, with no need for this interest to reverse if the purpose of

the loan fails. The problem with Wilberforce's analysis, as explained by Alastair

Hudson, Professor of Equity and Law at Queen Mary, University of London, is that

because the resulting trust only comes into existence after the misuse of the loan, it

may come too late; if the money is not available when the claim is brought, there is

no remedy. The borrower may already have spent the money, or already be insolvent

and the subject of claims by creditors.

Another flaw with both Wilberforce's and Millett's explanations is that if the interest

is retained by the lender from the outset of the contract, it is not a resulting trust at

all; the complete transfer of money should end the lender's equitable interest. It could

be argued that the creation of a Quistclose trust is not based on the recovery of the

original interest, but the creation of a new one. Doubts have also been raised about

the Twinsectra case in general, in that the facts of the case did not create a

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stereotypical Quistclose trust; this causes problems with applying Millett's analysis.

2. Express trust

The second possibility is that Quistclose trusts are express trusts. If the contract

included a provision that the money was to only be used for certain purposes, it could

be interpreted that this money is held on trust until it is used for those purposes. The

borrower would be a trustee; using the money for any other purpose would be in

violation of the trustee's duties, and so void. This trust would be created as soon as

the contract is agreed, with the normal requirement for it to be validly created.

Two problems with this are that it has not been upheld by the English courts, and that

the courts would require those explicit terms to be part of the contract; Hudson

considers it the most advantageous however, because it would offer the simplest

protection of the money by not requiring the contract to be breached for the trust to

come into existence. In Swiss Bank Corporation v Lloyds Bank Ltd, the courts

considered a situation similar to Quistclose, in that a loan agreement was made where

the borrower's explicitly agreed to follow guidelines on the use of the money,

something they failed to do. The Court of Appeal and the House of Lords refused to

constitute any kind of trust or return the money however, applying Lord Wrenbury's

judgment in Palmer v Carey,when he said that "such a stipulation will not amount to

an equitable assignment".

3.Constructive trust

The third main theory is that Quistclose trusts could be constructive trusts, which are

created when the future trustee uses the money in an "unconscionable" manner. In



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Quistclose situations, it could be that if the lender claims an equitable interest in the

money after it is used for an incorrect purpose, this could be "unconscionable". In

Carreras Rothmans Ltd v Freeman Mathews Treasure Ltd, the Quistclose trust principle was given to be that "equity fastens of the conscience of the person who

receives from another property transferred for a specific purpose only and not

therefore for the recipient's own purposes, so that such person will not be permitted

to treat the property as his own or to use it for other than the stated purpose"; this

reference to "conscience" could make Quistclose trusts constructive in nature.

However, no constructive trust could be created until the money is misused, which

may be too late for an effective remedy.

4. TRUST FOR VALUE

The purposes and uses of trusts historically had to do with management of property

in absence of owner, mostly during medieval times when a lord left to fight in battle.

Gradually, the device also found usefulness to control property "beyond the grave",

although the so-called Rule Against Perpetuities limited this power

1). Asset management

Trusts are generally unique in that they can provide comprehensive assetmanagement for multiple family generations over great spans of time, something

which other estate planning devices cannot completely replicate. Trusts can hold title

to a virtually infinite number and type of disparate assets, from publicly traded

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securities, to illiquid closely held business interests, to real estate, to even collectibles

and tangible personal property. Unlike other methods of transferring title, the trust

allows continued management of the assets, despite the infirmity or even death of theowner – allowing them to specify to successor trustees exactly how to manage the

property and use it for the future beneficiaries. This can extend for multiple

generations or even, in some jurisdictions, in perpetuity (as some states have

permitted in some instances the creation of trusts that can last beyond the Rule

Against Perpetuities).

The third-party management of property for the benefit of another is especially

valuable for persons who have some form of incapacity, infirmity or are simply

unwise with the use of money. Many create trusts to protect family members from

themselves.

In addition, the trustees' powers over the assets can be incredibly broad and flexible

and do not require the supervisory eye of a court (and the attendant additional cost

such oversight can create). Particularly in cases where a corporate trustee is used, the

grantor and subsequent beneficiaries receive the benefits of a vast array of financial

services – portfolio management, real estate and business management, bill paying,

insurance claim processing, tax and legal assistance, and financial planning just to

name a few.

Revocable living trusts were often touted and marketed as valuable solely because of

their ability to "avoid probate" and the costs and complications that surrounded it.

Although probate avoidance is certainly a consideration in the use of a "living trust",

there are many other estate planning techniques which also "avoid" probate.

Typically however, such alternatives do not provide the kind of consolidated asset



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management that a trust can. Although trusts are certainly not for everyone in the

context of estate planning, even persons with modest net worths often find the living

trust an ideal planning tool.

2). Estate tax avoidance

Trusts are often created pursuant to an estate plan for wealthy individuals to avoid the

onerous effects of the federal estate tax. Under current federal estate tax law, in 2008,

individuals that own interests in any property (individually owned, jointly held, or

otherwise) which exceeds a fair market value of $2 million is subject to the estate tax

at death; in 2009, the amount is $3.5 million. In 2010 there is no federal estate tax

unless Congress acts. An estate that exceeds that value will pay tax on that excess at

a rate of 45% under current law. Naturally, this rate is a huge inducement among

many with substantial wealth to use various estate planning devices to reduce or

eliminate the effect of the tax for their family. Below is a brief summary of certain

specific techniques that employ trusts as the vehicle for achieving such savings.

3). The credit shelter trust

The credit shelter trust is by far the most common device used to extend the $2

million applicable credit ($3.5 million in 2009) for married couples. In this

technique, each spouse creates a trust and divides their assets (usually evenly)

between the two trusts. The terms of the credit shelter trust provide that upon the first

spouse's death, the other is left an amount in trust for the benefit of the surviving

spouse up to the current federal exemption equivalent to the federal estate tax. Thus

an individual would leave, say, $2 million in trust for his wife (keep the $2 million

out of her estate), give his widow the net income from his trust, and leave the

remaining corpus to his children at her death.

4). Charitable remainder / Lead trusts

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Trusts are often created as a way to contribute to a charity and retain certain benefits

for oneself or another family member. A common technique is to create a charitable

remainder unitrust ("CRUT"). Typically, this irrevocable trusts are funded with assetswhich often are highly appreciated, meaning their cost basis for capital gains tax

purposes is very low relative to their current fair market value. This can be real

estate, highly appreciated stock or a business interest with a low (or zero) tax basis.

Once the trust is funded, typically the asset is sold and invested in a more diversified

investment portfolio that can provide income or liquid securities to provide an

"annuity" to one or two individual persons, based on a set percentage provided for

under the trust instrument and under IRS regulations. The annuity can be set for a

certain term of years or can last for the lifetime of individual beneficiary(ies). Then,

after the annuity term expires, the principal of the trust goes outright to a charity or

charities the grantor named in the trust document. MIf the trust meets the

requirements of the IRS regulations, the grantor of the trust will receive a charitable

income tax deduction for the calculated future value of the gift. Moreover, when he

transfers the property into the CRUT irrevocably, the value of that property is out of

his estate for estate tax purposes as well, even if he himself receive the individual

annuity interest in the trust. In many cases, when properly structured, the CRUT can

provide enough tax benefits to beneficiaries through the use of the annuity interest to

justify the "giving away" of the asset to charity. However, this "giving away" of

assets often causes many to forgo this technique, preferring to leave the assets

directly to children regardless of the potential tax consequences it may create.

6). Life insurance trust : A life insurance trust is an irrevocable, non-amendable trust

which is both the owner and beneficiary of one or more life insurance policies. Upon

the death of the insured, the Trustee invests the insurance proceeds and administers

the trust for one or more beneficiaries. If the trust owns insurance on the life of a

married person, the non-insured spouse and children are often beneficiaries of the

insurance trust. If the trust owns "second to die" or survivorship insurance which



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only pays when both spouses are deceased, only the children would be beneficiaries

of the insurance trust.

7). Unit trust

A unit trust is a form of collective investment constituted under a trust deed.

Found in Australia, Ireland, the Isle of Man, Jersey, New Zealand, South Africa,

Singapore, Malaysia and the UK, unit trusts offer access to a wide range of securities.

Unit trusts are open-ended investments; therefore the underlying value of the assets isalways directly represented by the total number of units issued multiplied by the unit

price less the transaction or management fee charged and any other associated costs.

Each fund has a specified investment objective to determine the management aims

and limitations.

Structure

1. The fund manager runs the trust for profit.

2. The trustees ensure the fund manager keeps to the fund's investment objective

and safeguards the trust assets.

3. The unitholders have the rights to the trust assets.

4. The distributors allow the unitholders to transact in the fund manager's unit

trusts

5. The registrars are usually engaged by the fund manager and generally acts as a

middleman between the fund manager and various other stakeholders.

Open-Ended: Unit trusts are open-ended; the fund is equitably divided into units

which vary in price in direct proportion to the variation in value of the fund's net

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asset value. Each time money is invested, new units are created to match the

prevailing unit buying price; each time units are redeemed the assets sold match the

prevailing unit selling price. In this way there is no supply or demand created for units and they remain a direct reflection of the underlying assets. Unit trust trades do

not have any commission.

Bid–Offer Spread

The trust manager makes a profit in the difference between the purchase price of the

unit or offer price and the sale value of units or the bid price. This difference is

known as the bid–offer spread. The bid–offer spread will vary depending on the type

of assets held and can be anything from a few basis points on very liquid assets.

Mechanics

A unit is created when money is invested and cancelled when money is divested. The

creation price and cancellation price do not always correspond with the offer and bid

price. Subject to regulatory rules these prices are allowed to differ and relate to the

highs and lows of the asset value throughout the day. The trading profits based on the

difference between these two sets of prices are known as the box profits.

Ways To Invest

Units can be bought direct from the fund manager, held through a nominee account

or through a PEP (Personal Equity Plan ) or ISA (Individual Savings Account).



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5. CONCLUSION:-

A type of living trust that is created during the lifetime of the trustor, and is also

known as an inter vivos trust. In a voluntary trust, the trustor retains legal title of the

gift transferred to the beneficiary, even though the beneficiary has actual title and

possession. A voluntary trust is also defined as an obligation arising out of a

personal confidence reposed in, and voluntarily accepted by, one individual for the

benefit of another. No consideration is made in a voluntary trust. In a voluntary trust,

the recipient of the trust gives nothing in exchange for the trust but receives it as a

pure gift. This distinguishes voluntary trusts from trusts for value, which are trusts

made in favor of purchasers and mortgagees.

Quistclose trusts have variously been considered resulting, express or constructive in

nature. Quistclose trust is an "illusory trust", where the apparent beneficiary (the

moneylender, for example) takes no active role. This trust is created by the intentionof either party, and is revocable at any time.

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7.BIBLIOGRAPHY

Websites links

1. http://www.britannica.com/ebc/article-9061389

2.

http://www.law.yale.edu/documents/pdf/Faculty/The_Functions_of_Trust_Law.pdf

3.http://www.legifrance.gouv.fr/affichTexte.do?

cidTexte=JORFTEXT000000821047&dateTexte

4. http://scottrosenberglaw.com/faq.html#Trusts

http://www.britannica.com/ebc/article-9061389







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voluntary trust, illusonary trust for value

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