Centro di Studi Internazionali “G.B. Dèlfico” — Atri (Te)


                        SUB TRUST     When it happens?

(prof.Mauro Norton Rosati di Monteprandone)


Sometimes the trustee may hold the equitable interest on behalf of a beneficiary.

This would be the case where a beneficiary, who enjoys an equitable interest under a subsisting trust, creates a trust of his interest in favour of another, ie a beneficiary under a trust creates a sub-trust of hi sentire interest in favour of a sub-beneficiary.


The effect of this arrangement is that the benficiary under the original  trust assigns his interest to the new beneficiary by way of a trust.


In this situation the original beneficiary adopts the role of the settlor and the trustee for the benefit of another.


T (legal  owner)  --------B ( orginal equitable owner)----C( sub-beneficiary or new equitable owner)


Inteed, it’s possible for the original equitable owner to create a sub-trust and, at the same time, remain an equitable owner of trust property.


This would be the positio where the original equitable owner declars a trust of part of his equitable interest.

For example, T ( legal owner) holds on trust for B absolutely (equitable owner).

B retains a life interest in the property and declares himself a trustee of the remainder for C absolutely.


The new arrangemenbt may be illustrated as follows:


                            B(life interest)  -  C( remainder interest)

T ( legal owner)----------------------------------------------------------

                            ( equitable owners)


It should be noted that in respect of the sub.trust, B will  have active duties to perform on

Behalf of his new beneficary C.


    Data pubblicazione: 17/05/2014
    Ultimo aggiornamento: 17/05/2014

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