A Proprietary Interest

The proprietary character of the beneficial interest under a trust was clearly stated in Westdeutsche Landesbank Girozentrale v Islington London Borough Council [1996] AC 669, where Lord Browne- Wilkinson said at 705:

Once a trust is established, as from the date of its establishment the beneficiary has, in equity, a proprietary interest in the trust property, which proprietary interest will be enforceable in equity against any subsequent holder of the property (whether the original property or substituted property into which it can be traced) other than a purchaser for value of the legal interest without notice.

The beneficiaries also have personal rights to have the trust obligations carried out in their favour by the trustees. In the event that another party acquires trust property as a bona fide purchaser without notice, then the beneficiaries have a claim in personam against the Trustees.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>