Trust Instrument - Definition - Law Dictionary Home Dictionary Definition trust-instrument

Definition :

Trust instrument. Under the (English) Settled Land Act, 1925, s. 117 (1) (xxxi.) and s. 9, includes in relation to settled land, any instruments whereby the trusts of the settled land are declared other than a vesting instrument or vesting conveyance. By s. 4 (ibid.), the trust instrument constituting a settlement must, if made after 1925:

(a) declare the trusts affecting the settled land;

(b) appoint or constitute trustees of the settlement;

(c) contain the power (if any) to appoint new trustees;

(d) set out any intended addition to or enlargement of the statutory powers;

(e) bear the proper ad valorem stamp which may be payable by virtue of the vesting deed or otherwise in respect of the settlement.

And see also s. 9 as to settlements or instruments which are to be deemed to be trust instruments for the purposes of the Act, although not complying in form with the above-mentioned requirements.

A purchaser for value in good faith is not affected by the contents of the trust instrument and is not entitled to information in regard to it (s. 110), except as there provided, e.g., a purchaser taking title under the first vesting instrument; and see s. 5 (2). Under the same s. 117 (ubi sup.), a trust instrument presumably includes an instrument containing the settlement of proceeds under a trust for sale [see s. 36 (ibid.)], but there is no express statutory definition of a trust instrument declaring the trusts under a trust for sale.