Fixed Trust

A fixed trust is a type of trust where the beneficiaries and their respective shares are clearly defined by the trust document, leaving no discretion to the trustee. This structure ensures that the distributions of the trust assets are predetermined and legally enforceable.

The concept of fixed trusts has its roots in English common law, particularly crystallizing in the 19th century as trusts became a common means of managing property and estate planning. Historically, fixed trusts were established to provide clear rights and entitlements to beneficiaries, based on specific terms set forth by the trustor.

In modern law, fixed trusts are often used in estate planning to ensure that assets are distributed according to the specific wishes of the grantor. They provide predictability for beneficiaries and eliminate ambiguity regarding entitlement, thus avoiding potential disputes among heirs.

• A trust established by a parent for their children, where each child receives a specified percentage of the trust upon reaching adulthood.
• A trust set up to hold real estate that stipulates equal distribution of rental income among named beneficiaries.

• Knight v. Knight (1840)