Completely and incompletely constituted trusts, Financial Accounting

Completely and incompletely constituted trusts
 
In all cases the trust must be completely constituted.  A trust is completely constituted when the trust property has been vested in trustees for the benefit of the beneficiaries.  Where there is merely a contract or covenant to create a trust, the trust is said to be incompletely constituted.

A completely constituted trust may be enforced by any beneficiary, including a volunteer; an incompletely constituted trust can only be enforced by a beneficiary who has given value. Thus a trust is incompletely constituted where there is merely a covenant by a settlor to settle property which he expects to acquire. If the settlor does not settle the property when he eventually acquires it, although he will be liable in damages to the intended beneficiaries, if they were parties to the covenant, and the covenant was under seal, those beneficiaries,if volunteers, cannot enforce their expected beneficial interest in the property to be settled. 

Posted Date: 12/13/2012 5:46:07 AM | Location : United States







Related Discussions:- Completely and incompletely constituted trusts, Assignment Help, Ask Question on Completely and incompletely constituted trusts, Get Answer, Expert's Help, Completely and incompletely constituted trusts Discussions

Write discussion on Completely and incompletely constituted trusts
Your posts are moderated
Related Questions
Change in profit sharing ratio When there is a change in profit sharing ratio, it means that some of the partners will get higher profits based on the new ratios in the future wh

1. What accounting firm performed the audit of Zetar's financial statement? 2. What is the address of the company's corporate headquarters? 3. What is the company's reporting

In no more than one typed page, provide a statement of your decision to invest or not invest in this company's stock based on your interpretation of the company's long-term prospec

ACCOUNTANCY PRINCIPLES (GAAP - GENERALLY ACCEPTED ACCOUNTING PRINCIPLES) Accounting values, rules of conduct and action are explained by a variety of terms for instance convent

Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Experienced Auditor - An AUDITOR who has a reasonable understanding of audit activities and has studied company's industry as well as accounting and auditing issues relevant to the

A changeable instrument is deemed part liability and part equity. IAS 32 necessitate that each part is measured individually on initial recognition. The liability element is


Explain the movements in working capital in terms of a business''s cash cycle. Explain some of the options available and their effect on the cash cycle.

Company conversion features If the formation costs are to be bourne by the company then the profit or loss on realization will be the same as the company then the new company (