lOMoARcPSD|4343847
GLOSSARY OF TERMS
In your reading you will encounter some legal terms which can seem daunting at first, but
which you will get used to. Some of these are listed below.
administrative power power to administer and manage trust property
administrator / administratrix person appointed by the court to manage the winding
up and distribution of the estate of an intestate or of a
testator / testatrix who did not appoint an executor /
executrix or whose executor / executrix has
predeceased her or refused to act as such; a close
relative or a creditor may apply to the court for the
grant of letters of administration
bailor the owner of tangible property, custody (or possession)
of which is delivered to a bailee
bailee the custodian of tangible property owned by another
person, although the bailee is regarded by the common
law as having a special property in the bailed goods, so
that she can sue third parties in possession of those
goods
beneficial ownership the ownership of an interest in property for one’s
personal enjoyment, having the economic benefit from
the property; e.g. where A is owner of a freehold estate
in land she has legal beneficial ownership; where A
holds property as trustee for B, B has equitable
beneficial ownership of the property
bequest gift of personal property by testamentary disposition
cestui que trust old-fashioned name for a beneficiary
chattels tangible movable property, e.g. gold bars, bicycles,
cats
chose in action a legal or equitable right to recover a debt or damages,
enforceable only by court action and transferable
gratuitously not by delivery but by signed writing or a
deed, known as an ‘assignment’, a chose in action
being property that may be assigned for value or
gratuitously
contingent interest an interest in property which is made subject to its
owner fulfilling a condition (e.g. attaining 30 or being
alive at the life tenant’s death)
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covenant a promise made in a deed (i.e. a document expressed to
be a deed and signed as a deed in front of a witness
signing as such) which is a legal chose in action
devise gift of real property by testamentary disposition
discretionary trust trust under which the trustee has a duty to distribute
income and/or capital (and so MUST distribute) and a
discretionary power to choose who benefits and in
what amount
distributive power the power to distribute trust income and/or capital to
the beneficiary of a discretionary trust or the object of
a power of appointment [sometimes called a
‘dispositive power’]
donee recipient of a gift
executor / executrix person named in will of testator / testatrix to be
‘executor’ or ‘executrix’ or otherwise clearly intended
to carry into effect the will's provisions
fiduciary power a power to deal with property, where the power-holder
is under fiduciary and equitable duties to consider from
time to time the exercise of the power, taking account
of the purposes for which the donor of the power
conferred it; if the power is exercised it must be
exercised sensibly and fairly without prejudice or
malice and (unless permitted to do so by the donor) the
power holder must act altruistically and not for her
own private benefit
gift a gratuitous transfer of property at common law or of
an interest in property in equity - e.g. where S transfers
legal title to X beneficially, or to T on trust for B, or
where S declares herself trustee of her property on trust
for B
inter vivos literally, ‘between the living’; during one’s lifetime (as
in lifetime transfer of property)
intestate person dying without a valid will
interest vested in possession an interest giving its owner the immediate right to the
income of, or the use of, the trust property
interest vested in remainder an interest giving its owner an interest in possession in
property once the preceding interest ceases without the
owner needing to fulfil a condition (whether because
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any condition has been satisfied or because no
condition was imposed)
life tenant a beneficiary entitled to a life interest under a trust to
receive income but not capital from the trust fund for
life
mere expectation the mere hope (‘spes’ in Latin) that a person may have
of acquiring an interest in property - e.g. under the will
of a living person or if a power of appointment
happens to be exercised
object in the narrow sense, any person in whose favour a
power of appointment may be exercised or in the
broader generic sense, also any beneficiary or purpose
in favour of which a trust is established
personal power a right to deal with property held in a personal
capacity, where the power-holder is restricted to
exercising the power, if she exercises it at all, in favour
only of those persons or purposes within the scope of
the power, but owes no duties to anyone when
exercising the power (whether sensibly or spitefully) or
deciding not to exercise the power
personal property all property other than freehold land, including
leasehold land (sometimes called chattels real), chattels
(or personal chattels), and choses in action
power of appointment power to appoint property out of a fund to particular
people or purposes; may be held in a personal or a
fiduciary capacity
personal representative an executor / executrix or administrator / administratrix
who becomes legal beneficial owner of a deceased
person’s estate, subject to equitable duties to collect in
the estate, pay debts and taxes, pay legacies and then
distribute the net residue to the persons entitled
real property freehold land
remainderman a beneficiary entitled to the capital of the trust fund at
the death of the last life tenant [the word
‘remainderman’ is used for both genders]
settlor a person who creates a trust, normally by transferring
ownership of property to a trustee but, exceptionally,
by declaring herself to be trustee of clearly identified
property already owned
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testamentary contained in a will taking effect only on death
trust power another name for a discretionary trust [as used by e.g.
Lord Wilberforce in McPhail v Doulton, in
contradistinction to a ‘mere power’]
trustee a person owning property in her capacity as trustee for
the benefit of beneficiaries of whom she may be one
(but not the only one) or for charitable purposes (or
non-charitable purposes where permitted)
What is Equity?
GLOSSARY OF TERMS
In your reading you will encounter some legal terms which can seem daunting at first, but
which you will get used to. Some of these are listed below.
administrative power power to administer and manage trust property
administrator / administratrix person appointed by the court to manage the winding
up and distribution of the estate of an intestate or of a
testator / testatrix who did not appoint an executor /
executrix or whose executor / executrix has
predeceased her or refused to act as such; a close
relative or a creditor may apply to the court for the
grant of letters of administration
bailor the owner of tangible property, custody (or possession)
of which is delivered to a bailee
bailee the custodian of tangible property owned by another
person, although the bailee is regarded by the common
law as having a special property in the bailed goods, so
that she can sue third parties in possession of those
goods
beneficial ownership the ownership of an interest in property for one’s
personal enjoyment, having the economic benefit from
the property; e.g. where A is owner of a freehold estate
in land she has legal beneficial ownership; where A
holds property as trustee for B, B has equitable
beneficial ownership of the property
bequest gift of personal property by testamentary disposition
cestui que trust old-fashioned name for a beneficiary
chattels tangible movable property, e.g. gold bars, bicycles,
cats
chose in action a legal or equitable right to recover a debt or damages,
enforceable only by court action and transferable
gratuitously not by delivery but by signed writing or a
deed, known as an ‘assignment’, a chose in action
being property that may be assigned for value or
gratuitously
contingent interest an interest in property which is made subject to its
owner fulfilling a condition (e.g. attaining 30 or being
alive at the life tenant’s death)
, lOMoARcPSD|4343847
covenant a promise made in a deed (i.e. a document expressed to
be a deed and signed as a deed in front of a witness
signing as such) which is a legal chose in action
devise gift of real property by testamentary disposition
discretionary trust trust under which the trustee has a duty to distribute
income and/or capital (and so MUST distribute) and a
discretionary power to choose who benefits and in
what amount
distributive power the power to distribute trust income and/or capital to
the beneficiary of a discretionary trust or the object of
a power of appointment [sometimes called a
‘dispositive power’]
donee recipient of a gift
executor / executrix person named in will of testator / testatrix to be
‘executor’ or ‘executrix’ or otherwise clearly intended
to carry into effect the will's provisions
fiduciary power a power to deal with property, where the power-holder
is under fiduciary and equitable duties to consider from
time to time the exercise of the power, taking account
of the purposes for which the donor of the power
conferred it; if the power is exercised it must be
exercised sensibly and fairly without prejudice or
malice and (unless permitted to do so by the donor) the
power holder must act altruistically and not for her
own private benefit
gift a gratuitous transfer of property at common law or of
an interest in property in equity - e.g. where S transfers
legal title to X beneficially, or to T on trust for B, or
where S declares herself trustee of her property on trust
for B
inter vivos literally, ‘between the living’; during one’s lifetime (as
in lifetime transfer of property)
intestate person dying without a valid will
interest vested in possession an interest giving its owner the immediate right to the
income of, or the use of, the trust property
interest vested in remainder an interest giving its owner an interest in possession in
property once the preceding interest ceases without the
owner needing to fulfil a condition (whether because
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any condition has been satisfied or because no
condition was imposed)
life tenant a beneficiary entitled to a life interest under a trust to
receive income but not capital from the trust fund for
life
mere expectation the mere hope (‘spes’ in Latin) that a person may have
of acquiring an interest in property - e.g. under the will
of a living person or if a power of appointment
happens to be exercised
object in the narrow sense, any person in whose favour a
power of appointment may be exercised or in the
broader generic sense, also any beneficiary or purpose
in favour of which a trust is established
personal power a right to deal with property held in a personal
capacity, where the power-holder is restricted to
exercising the power, if she exercises it at all, in favour
only of those persons or purposes within the scope of
the power, but owes no duties to anyone when
exercising the power (whether sensibly or spitefully) or
deciding not to exercise the power
personal property all property other than freehold land, including
leasehold land (sometimes called chattels real), chattels
(or personal chattels), and choses in action
power of appointment power to appoint property out of a fund to particular
people or purposes; may be held in a personal or a
fiduciary capacity
personal representative an executor / executrix or administrator / administratrix
who becomes legal beneficial owner of a deceased
person’s estate, subject to equitable duties to collect in
the estate, pay debts and taxes, pay legacies and then
distribute the net residue to the persons entitled
real property freehold land
remainderman a beneficiary entitled to the capital of the trust fund at
the death of the last life tenant [the word
‘remainderman’ is used for both genders]
settlor a person who creates a trust, normally by transferring
ownership of property to a trustee but, exceptionally,
by declaring herself to be trustee of clearly identified
property already owned
, lOMoARcPSD|4343847
testamentary contained in a will taking effect only on death
trust power another name for a discretionary trust [as used by e.g.
Lord Wilberforce in McPhail v Doulton, in
contradistinction to a ‘mere power’]
trustee a person owning property in her capacity as trustee for
the benefit of beneficiaries of whom she may be one
(but not the only one) or for charitable purposes (or
non-charitable purposes where permitted)
What is Equity?
