Equity and Trusts Essay Example | Topics and Well Written Essays - 2500 words - 2

Equity and Trusts - Essay Example for the administration of the law of equity.2 The principle of Equity was developed as a result of the hash outcome as a result of rigid application in the common law rules.3 Equity is referred to as fairness and was a powerful source of law because this overcame problems found in the common law. This gives people more appropriate remedies than in common law. Over the years, equity has evolved which brings out the question of it has become more relaxed now than before. This essay takes a look at the development of the law to trust and equity from the common law. It then takes a look at trust, in particular the discretionary trusts, how it has developed and analyzing if the law has become more relaxed now as opposed to before the decision made in the case of McPhail v Doulton. Since the introduction of common law, decisions were applied strictly and they were unfair. During the early days, there were not many remedies for people and the Chancery rule prevailed. Because of the many weaknesses experienced, there was the introduction of equity. Equity is based on the consciousness where the court correct errors found in the law in order to ease the conscience of individuals. Equity is discretionary and acts as a supplement to the common law and therefore, does not contradict it. A trust is an obligation where the property right grows from. Trust can be defined as a creature of equity.4 Trust was developed centuries ago and incorporated different types like discretionary trust and the fixed trust. Under the fixed trust, also known as â€Å"an interest in possession†, the share of a property under trust in which a beneficiary is to receive is fixed into the trust instrument.5 The interests of the beneficiaries are determined at the outset. In this type of trust, the trustee has the obligation to dispose the property under trust as per the terms of the trust which is not the case under the discretionary trust where the trustee may have some discretion on the exact value