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Legal Terms – Imperfect Trust
An imperfect trust describes a situation in which the formalities for creating a trust have not been properly completed, meaning the trust cannot take effect as intended.
For example, the settlor may fail to:
- Properly declare themselves as trustee;
- Transfer the trust property to the intended trustees; or
- Satisfy statutory requirements (e.g., trusts of land needing writing under the Law of Property Act 1925).
In such cases, the trust will often be treated as an executory trust, in which the courts may direct how the imperfect arrangement should ultimately be completed.
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