How to create an Express Trust: The Basics

Distinguishing Express Trusts from other types of trusts

There are many forms of trusts that can arising in a number of ways. To establish what sort of trust you have or intend to create, the distinction between the available trust first needs to be made.

Trusts are capable of arising in several different ways.  Such as:

  • (a) A declaration may be made by a property owner that (s)he or some other person will hold the property on trust for specified beneficiaries or for some designated purpose. A trust arising in this manner is called an express trust.

  • (b) It quite often happens that a property owner transfers such property to another person not intending the recipient to enjoy the benefit of the property but fails to specify who is to take the benefit or the intended beneficiary cannot be identified. In such circumstances, equity will normally make the recipient hold the property on trust for the the person who originally transferred the property. Such a trust is called a Resulting trust.

E.g. Angela pays £10,000 into Bert’s bank account but gives no indication that this is intended as a gift. Unless Bert is Angela’s wife/child, Bert will ordinarily hold it on resulting trust for A

  • (c) In a certain of situations, it is considered inequitable for a legal owner of property to lay claim to the property exclusively for their own benefit.. One mechanism devised by equity for dealing with such situations is to impose a constructive trust.  Basically, the constructive trust is the remaining category of trust and comes into operation in a variety of contexts in which the courts deem it necessary to compel a person to hold property for the benefit of another in the interests of justice and good conscience.

Unlock this article now!


For more information on:

  • Where a beneficiary under a will unlawfully kills the testator (creator of the will)  and inherits their property
  • The basic requirements for the creation of express trusts