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Constituting the Trust

In general no trust is created, whatever Intention the Settlor has manifested, unless legal title is vested in the trustees. This is known as constituting the trust. The trustees must have control of the property. If formalities are required for this transfer, for example in the case of land or shares, then they must be complied with.

A trust is completely constituted by the settlor either:

1. •

   effectively transferring certain property to trustees and declaring the trusts on which the trustees are to hold such property, or

2. •

   declaring that certain property vested in them is to be held henceforth by them on trust

The effect of Constitution of the trust

The effect of constituting a trust is:

1. •

   irreversible by the settlor though voluntary, just as a gift once given is binding on the donor and cannot be revoked (unless the settlor has by the terms of the trust, specifically granted themselves or someone else an express power to revoke)

2. •

   to give beneficiaries enforceable rights in relation to the property