Note: This paper was delivered at both the Victorian and Tasmanian Conventions in 2008 (9-11 October and 17-18 October respectively).
This paper considers some of the fundamental concepts underlying the trust relationship and considers how they relate to the modern day trust structure. Issues addressed include:
- is the concept of the substratum of a trust still relevant?
- mere, trust, general, special, hybrid and dispositive powers - what are they and why is the distinction important?
- consideration of the fiduciary obligation of trustees
- beneficiaries of a discretionary trust as discretionary objects - significance?
- an overview of income for the purposes of Division 6 and its application for a modern trust structure.