Types of Beneficial Interests – Vested, Contingent and Trust Structures

In this episode of SQE1 Essentials, we break down the types of beneficial interests under English trust law — a core component of the SQE1 syllabus and vital for understanding trust structures, beneficiary entitlements, and trustee powers.🎯 Topics covered:Capital vs income: what beneficiaries may be entitled to receiveVested interests vs contingent interests, and how s.31 of the Trustee Act 1925 affects minors' incomeSuccessive interests: life tenants, remaindermen, and future interestsThe principle of Saunders v Vautier – when beneficiaries can collapse the trustTypes of trusts:▪️ Fixed trusts – requiring a complete list of beneficiaries (IRC v Broadway Cottages)▪️ Discretionary trusts – governed by the “is or is not” test (McPhail v Doulton) and clarified in Re Baden (No. 2)▪️ Bare trusts – absolute entitlement with no discretionTrustee obligations under the Trustee Act 2000, including the duty of impartiality (Nestle v NatWest)📘 By the end of this episode, you’ll be able to distinguish between trust structures and accurately map out beneficiary rights in a range of scenarios.📲 Learn more via the PASS-SQE App or at celetraining.com