Chapter 9 Key facts checklists

Trusts of land

Whilst strict settlements created before TLATA 1996 and governed by the Settled Land Act 1925 can continue to exist, the creation of new successive interests must be by way of a trust of land.
The creation of concurrent interests in land generally now occurs by way of a trust of land, governed by TLATA 1996 and replacing their forerunner, trusts for sale.
Trusts of land may be expressly or impliedly created and where implied, may be resulting or constructive trusts.
Whilst the key feature of the trust for sale was that trustees had a duty to sell the trust land, with a power to postpone, under a trust of land trustees have the power to sell, but need not do so.
Key provisions of TLATA 1996 include:
– ss 6–8 governing the extent of trustees’ powers over the trust property;
– s 11 governing the circumstances in which trustees have a duty to consult beneficiaries when exercising their powers;
– ss 12–13 governing the rights of beneficiaries to occupy the trust property; and
– ss 14–15 governing the right of an interested party to make an application to the court for an order to resolve a dispute over trust land (see chapter 10).