Law of Trusts, Wills and Administration of Estates
What the exam tests
Trusts, wills and estate administration. Core sources are the Trusts Ordinance No. 9 of 1917, the Wills Ordinance No. 21 of 1844, the Administration of Estates Ordinance No. 8 of 1922 and District Court probate practice.
Core rules
- A trust separates legal and beneficial ownership. Trustees must act personally, prudently and in the beneficiaries' interest; keep accounts; avoid conflict and secret profit; and invest within their powers.
- Express trusts of land should be evidenced in writing and properly attested; resulting and constructive trusts arise by operation of law.
- A will must be in writing, signed by the testator, and attested by two witnesses present at the same time. A notary may draft or attest, but notarization does not replace the witnessing requirement.
- Probate or letters of administration are granted by the District Court. An executor's authority derives from the grant; distribution before grant is risky.
- Intestate estates devolve under the applicable succession law, not simply to the eldest son.
Worked example
T signs her will and leaves the room. Two witnesses then sign separately. The will is invalidly attested because the witnesses did not sign in T's presence and in each other's presence. The notary should re-execute with all three present, or use a codicil only if the original will is valid.
Traps
Treating a notary's seal as a substitute for witnesses; allowing a beneficiary to witness; trustee self-dealing; distributing before probate; and ignoring the trust deed's investment clause.