The juridical legal effect of creating a trust is the separation of legal and equitable ownership, creating obligations enforceable in equity, with implications for property rights, taxation, and liability.

• Separation of title: Legal title vests in the trustee(s), who manage and control the property, while equitable (beneficial) interest vests in the beneficiary(ies), entitling them to enjoyment. This duality is fundamental, as per English common law adopted in Ghana (e.g., under Courts Act, 1993, Act 459), preventing the settlor from retaining full control post-creation.
• Imperative obligations on trustees: Trusts are imperative; trustees must act according to terms, facing personal liability for breaches. This enforces fiduciary duties like loyalty and prudence, aligned with BoG’s governance standards in trust-managed funds.
• Enforceability in equity: Beneficiaries can sue for remedies like specific performance or tracing, acting in personam. In Ghana, this applies to inter vivos or testamentary trusts, with formalities under Wills Act, 1971 (Act 360).
• Tax and creditor implications: Trusts can defer taxes (e.g., income to beneficiaries), but under Ghana Revenue Authority rules, settlors may be taxed on revocable trusts. Protects assets from settlor’s creditors if irrevocable.
• Practical example: In Ghanaian banking, creating a trust for client assets at Stanbic Bank during the DDEP (2022-2024) separated titles, allowing trustees to restructure bonds ethically, complying with BoG’s recapitalization guidelines (Notice BG/GOV/SEC/2023/05), enhancing resilience.
• Limitations: Must satisfy three certainties; invalid if illusory or against perpetuities (common law rule in Ghana limits to life in being plus 21 years).

This effect integrates into modern banking for asset protection, estate planning, and compliance, reducing risks like those in the UT Bank collapse due to poor governance.

(Marks allocation: 5 marks for separation of title; 5 for obligations; 5 for enforceability; 5 for implications with examples.)