1. Equity and Trusts Foundations
Apply equitable principles to express, resulting and constructive trusts, trusteeship, fiduciary obligations and remedies.
How to study the CPQ Advanced stage
Prepare each separately assessed component on its own terms, then connect legal analysis, client judgment, drafting, accounts and research across the route.
Core concepts
Concept 1
Trust validity requires the necessary intention, subject matter, objects and formalities.
Exam cue: Identify settlor, trustee, property, beneficiary and terms.
Concept 2
Trustees and fiduciaries must act within powers, for proper purposes and without unauthorised conflict or profit.
Exam cue: Separate breach of trust, fiduciary breach and third-party liability.
Concept 3
Equitable remedies and tracing are discretionary and depend on property, conduct and defences.
Exam cue: Match the client objective to personal and proprietary remedies.
Risk pitfalls and guardrails
Calling every informal promise a trust.
Guardrail: Do not study all optional modules as mandatory, combine unlike assessment structures, exceed professional authority or rely on outdated law, procedure, tax or regulator rules.
Assuming good faith cures an unauthorised conflict.
Guardrail: Do not study all optional modules as mandatory, combine unlike assessment structures, exceed professional authority or rely on outdated law, procedure, tax or regulator rules.
Seeking tracing without identifiable substitute property.
Guardrail: Do not study all optional modules as mandatory, combine unlike assessment structures, exceed professional authority or rely on outdated law, procedure, tax or regulator rules.
Memory anchors
Trust validity
Intention, property, objects, formality and constitution.
Trustee duty
Power, purpose, care, loyalty, records and beneficiaries.
Equitable remedy
Right, property, discretion, defence and practical result.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A client declares, 'I hope my niece will look after £20,000 for my grandchildren,' without imposing a clear obligation. Which certainty is most doubtful?
A trust deed says trustees may distribute 'some of my investments' but does not identify which assets. What is the central validity issue?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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