2.8 Trust
A trust separates legal ownership from beneficial interests.
A trust separates legal ownership from beneficial interests. The settlor creates the arrangement; the trustee holds or manages property for beneficiaries.
What you will learn
- Settlor, trustee, beneficiary
- Legal versus beneficial title
- Express trusts
- Resulting and constructive trusts
- Trustee duties
- Transactions
Core concepts at a glance
| Concept | Explanation |
|---|---|
| Settlor, trustee, beneficiary | The settlor creates the arrangement; the trustee holds or manages property for beneficiaries. |
| Legal versus beneficial title | The registered legal owner may not be the person entitled to the beneficial benefit. |
| Express trusts | A trust may be intentionally created with identifiable terms and subject matter. |
| Resulting and constructive trusts | Other trust interests may arise by operation of law in relevant circumstances. |
| Trustee duties | Trustees must comply with fiduciary duties and the trust terms. |
| Transactions | Identify whether the trustee has power to deal with the land and what approvals apply. |
1. Settlor, trustee, beneficiary
The settlor creates the arrangement; the trustee holds or manages property for beneficiaries.
2. Legal versus beneficial title
The registered legal owner may not be the person entitled to the beneficial benefit.
3. Express trusts
A trust may be intentionally created with identifiable terms and subject matter.
4. Resulting and constructive trusts
Other trust interests may arise by operation of law in relevant circumstances.
5. Trustee duties
Trustees must comply with fiduciary duties and the trust terms.
6. Transactions
Identify whether the trustee has power to deal with the land and what approvals apply.
Visual guide: Trust relationships
A topic-specific diagram to help you connect the concepts, rather than memorise isolated keywords.
How to read this diagram
- Settlor: Establishes the trust.
- Trustee: Holds legal title and duties.
- Beneficiary: Has beneficial interest.
- Trust property: Asset subject to the trust.
Apply it to a Singapore property scenario
A parent is registered as owner but holds a property on trust for another person.
How to approach it: Do not assume registered legal title and beneficial ownership are identical.
Every beneficial owner must appear as registered proprietor.
Remember: Legal and beneficial interests can differ.
Quick revision
- Settlor, trustee, beneficiary: The settlor creates the arrangement; the trustee holds or manages property for beneficiaries.
- Legal versus beneficial title: The registered legal owner may not be the person entitled to the beneficial benefit.
- Express trusts: A trust may be intentionally created with identifiable terms and subject matter.
- Resulting and constructive trusts: Other trust interests may arise by operation of law in relevant circumstances.
- Trustee duties: Trustees must comply with fiduciary duties and the trust terms.
- Transactions: Identify whether the trustee has power to deal with the land and what approvals apply.
Practice MCQs
Choose one answer per question, check your score and review the explanations.
Official resources
For current Singapore legislation and agency guidance, refer to Singapore Statutes Online, CEA. Check the requirements applicable to your examination sitting.