Chris Thorpe briefly looks at what implied trusts are, and why it matters for tax purposes.
The trusts which most practitioners are familiar with are ‘express’ trusts (i.e., those which are deliberately created); there is a trust deed or a will, a named settlor, trustees and beneficiaries. The powers and duties of the trustees will be outlined, and everyone will know where they stand.
Implied trusts
However, ‘implied’ trusts are imposed by the laws of equity; trusteeship and beneficial ownership will be ‘implied’ in line with the parties’ intentions and what is fair – in accordance with the principles of good conscience of the equitable courts (the Court of Chancery, and until 1841, the Exchequer Court).
The following (reproduced from my book ‘Implied Trusts and Beneficial Ownership in Modern UK Tax
