Types of Beneficial Interests – Vested, Contingent and Trust Structures
From SQE Exam Essentials and Preparations by CELE SQE
June 8, 2025 · 21 min · Season 11 · Episode 5
About this episode
This episode breaks down the types of beneficial interests under English trust law, essential for understanding trust structures and beneficiary rights.
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 receive Vested interests vs contingent interests , and how s.31 of the Trustee Act 1925 affects minors' income Successive interests : life tenants, remaindermen, and future interests The principle of Saunders v Vautier – when beneficiaries can collapse the trust Types 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 discretion Trustee 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
Topics covered
- types of beneficial interests
- English trust law
- trust structures
- beneficiary entitlements
- trustee powers
- capital vs income
- vested interests
- contingent interests
- successive interests
- Saunders v Vautier
- fixed trusts
- discretionary trusts
- bare trusts
- Trustee Act 2000
- duty of impartiality
Mentioned in this episode
Products: SQE1, the PASS-SQE, PASS-SQE App
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