Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Trusts > Cases > Flashcards

Cases Flashcards

1
Q

Knight v Knight (1840)

A

Defines three certainties

(1) Intention
(2) Subject matter
(3) Object

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Re: Hamilton (1895)

A

You need to investigate intention of individual testator. You can’t just rely on drafting to understand intent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Lambe v Eames (1871)

A

Turning point for stricter view of intention and precatory words

Widow was not bound to only spend money on herself/family - she could leave it in her own will because the husband’s will was a moral obligation, not a trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Comiskey v Bowring-Hanbury (1905)

A

Precatory words

In full confidence = not a trust
I hereby direct = trust

Estate left to wife who was directed to leave all remaining property to nieces upon her death

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Paul v Constance (1977)

A

A trust that didn’t use the word “trust”

Unmarried couple - he said “the money was as much hers as his” - showed intent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Midland Bank v Wyatt (1995)

A

Sham

Trust only established when settlor loses interest or has restricted interest in subject matter (and so has trustee) - must be genuine and not a sham

In Midland Bank, money was hidden in a trust to try to escape creditors. Fraud!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Re: London Wine Company (1986)

A

To have a perfect trust, tangible goods must be segregated (Sheep obiter)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Hunter v Moss (1994)

A

To have a perfect trust, intangible goods do not need to be segregated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Sprange v Barnard (1789)

A

Subject matter needs to be certain

“Remaining part of what is left” is not sufficiently certain. At best it’s a gift with a moral obligation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Re: Golay (1965)

A

Subject matter needs to be certain.

A “reasonable income” is sufficiently certain because “reasonable” is generally understood objectively in English law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

IRC v Broadway Cottages Trust (1955)

A

Fixed trust
Complete list test
All members of the class must be identified for a complete list

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Re: Gulbenkian’s Settlements (1970)

A

Power of appointment is valid if you know who is or isn’t part of the class

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

McPhail v Doulton (1971)

A

Discretionary trust
Is/isn’t test

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Re Rose (1952)

A

cf Milroy v Lord

If settlor does everything required of them but need independent third party to complete the transaction, trust is valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Strong v Bird (1874)

A

Improper transfer of legal title inter vivos
Only perfects legal title

  1. Donor must intend inter vivos gift
  2. Donor must have treated property as belonging to donee
  3. Only thing outstanding is transfer of legal title
  4. Property must survive donor’s death
  5. Donee appointed as executor
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Sen v Headley (1991)

A

Donation mortis causa

Guy gives house to ‘wife’ on death bed

  1. Gift must be in contemplation of impending death
  2. Gift must be conditional on donor’s death
  3. Delivery of property to donee
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Vandervell v IRC (1967)

A

Tax avoidance

If you don’t fully divest yourself of legal and equitable ownership of trust property, a resulting trust could form (and have tax liability)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Milroy v Lord (1862)

A

If deed is improperly executed, no trust is created

There is no equity in the court to perfect and imperfect gift

To make a settlement valid, settlor must do everything they can to effect the transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Grey v IRC (1960)

A

If beneficiary is receiving existing equitable interest, it must be written due to LPA s.53(1)(c)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Re: Tuck’s Settlement Trusts (1928)

A

Certainty of Objects

Beneficiary had to be of Jewish faith. Trust was valid because a rabbi could tell with certainty who was/wasn’t Jewish

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Mascall v Mascall (1985)

A

Constituting a trust

Completed transfer form for property sent from father to Stamp Office, which was delayed in processing. Father changed his mind on sale. Held that title had passed in equity (father had done everything he could have done to effect title change - re Rose) so the agreement couldn’t be prevented by stopping legal title transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Choithram v Pagarani (2000)

A

Equity will not aid a volunteer but it will not drive to defeat a gift

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Bristol and West Building Society v Mothew (1998)

A

Trustees and Fiduciary Duty

A fiduciary acts for another in a circumstance that yields trust and confidence

A trustee is therefore a fiduciary

Fiduciaries must act in good faith
Fiduciaries must not make unauthorised profit from a trust
Fiduciaries must not place themselves where duty and interest may conflict
Fiduciaries must not act for their own benefit or for the benefit of a third party without the informed consent of their principle

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Boardman v Phipps (1967)

A

Fiduciary duty

Family solicitor buys shares in a company that the family couldn’t. He makes changes that result in a ton of profit. Family asks for his share - he got the shares through fiduciary duty after all. Court makes him give back money but then awards him money for his services that improved the trust.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Speight v Gaunt (1883)

A

Trustee duty of care - Court of Appeal

A trustee is required to use the same degree of prudence and diligence as a person of ordinary prudence would have done if he had been conducting his own affairs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

AIB v Redler (2014)

A

Trustee duties

Solicitor firm had acted for both bank and borrowers.

Trustee duties are 1. custodial stewardship; 2. management stewardship; 3. undivided loyalty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Learoyd v Whiteley (1887)

A

Trustee duty of care - House of Lords

A trustee should exercise the same care as an ordinary, prudent person would in their own affairs and avoid all hazard

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Keech v Sanford (1726)

A

Fiduciary duty - loyalty

Landlord wouldn’t renew a lease for an infant at request of a trustee, but would renew lease for the trustee (who accepted). When the infant matured they sought profit from the lease. Court ruled that the profit should have been held on constructive trust for the child.

29
Q

Cowan v Scargill (1985)

A

Trustee Powers
Precedes Harries

Where a trust is made for a financial purpose, the trustees must act in the best financial interest independent of ethical/moral issues

30
Q

Harries v Church Commissioners for England (1992)

A

Trustee Powers
Follows Cowan

Trustees may limit investments for ethical reasons if a majority of beneficiaries consent and it will not risk significant financial detriment

31
Q

Nestle v National Westminster Bank Plc (1993)

A

Trustee Duty

It’s more important to avoid loss than seek growth of trust funds (as a duty), but not regularly reviewing investments shows incompetence and idleness

Trustees must act fairly for all classes of beneficiaries, whether they have life (income) or remainder (capital) interests

Case that first flagged portfolio theory

What is a suitable? Whatever is consistent with what reasonable trustees would do or with other accepted investment strategies

32
Q

Knight v Earl of Plymouth (1747)

A

Role of trustee

It’s a great act of kindness for anyone to accept the role of trustee

33
Q

Re: Pauling’s Settlement Trusts (1963)

A

Advancement

Trustees could not advance money for a particular purpose and pay money to beneficiary, leaving the beneficiary morally and legally free to spend it however they wished without any enquiry into the application of the funds

34
Q

Pilkington v IRC (1964)

A

Advancement/resettlement

An advancement can be made by way of resettlement as long as it benefits the beneficiary

35
Q

Westdeutsche Landesbank Girozentrale v Islington LBC (1996)

A

If D deals unconscionably with another’s property, D will hold that property on constructive trust for the claimant.

A bona fide purchaser for value without notice would acquire good title in the property bought even if that property had been subject to unconscionable actions (equity’s darling)

Essential nature of the trust is its regulation of the conscience of the common law owner of property

36
Q

Re Hay’s Settlement Trusts (1982)

A

Trustees have a fiduciary power independent from the trust instrument. That means they must obey the trust instrument, make no unauthorised appointments, consider periodically whether or not they should exercise their fiduciary power, consider the range of objects of the power, and consider the appropriateness of individual appointments

37
Q

Walsh v Lonsdale (1882)

A

Establishes doctrine of anticipation - a specifically performable agreement to create or transfer a property right will be good in equity even if not finally effective at law

38
Q

Target Holdings v Redferns (1996)

A

A trustee would be liable for breach of trust in an unsuitable investment were made which caused loss to the trust

Breach and loss must be linked

39
Q

Morice v Bishop of Durham (1804)

A

Objects must be certain so courts can enforce

If object matter is uncertain, trust property is held on resulting trust for the settlor

For a trust to be valid it must have at least one beneficiary who can enforce it

40
Q

Re Baden’s Deed Trusts (1973)

A

Certainty of objects; conceptual certainty

Several LJs review rule from McPhail v Doulton
What does “relative” mean?

Next of kin (is/isn’t)
Traced from common ancestor (evidential certainty not important)

41
Q

Armitage v Nurse (1998)

A

Breach and tracing

Breach may be deliberate or inadvertent; may be injurious to interests of beneficiaries or to their benefit

42
Q

AG for Hong Kong v Reid (1994)

A

Constructive trust

If fiduciary takes/makes bribe, they become in equity debtor for that bribe amount. If they pay back money via personal remedy that squares them.

43
Q

Le Foe v Le Foe (2001)

A

Constructive trust - single name - family home

What is detrimental reliance (Lloyd’s Bank)?

Could be money. Could be indirect contributions referable to acquisition of property, like managing family economy.

44
Q

Lloyd’s Bank v Rosset (1991)

A

Constructive trust - single name - family home

Requirements for constructive trust:
1. Common intention
2. Detrimental reliance ($)
3. Unconscionability

45
Q

Stack v Dowden (2007)

A

Constructive trust - joint names

You can rebut beneficial joint tenancy

Look to unequal contribution, discussions, purpose of property, presence of children, how parties arranged finances, character/personality of parties

46
Q

Re Macadam (1946)

A

Trustee power

Trustees may bill in professional capacity/if trust instrument allows

Trustees owe single minded loyalty to beneficiaries. If they join board based on appointment power of trust, they cannot keep fees

47
Q

Re Andrew’s Trust (1905)

A

Implied trust

If certainty of intention fails, transfer of property could become a gift instead of reverting to settlor

48
Q

Re Curtis (1885)

A

Implied trust

Rebuts presumption that a transfer is a bargain and not a gift for husband/wife

49
Q

Re Endacott (1959)

A

No trusts can be made for a purpose that isn’t charitable

Animals, graves, public masses

50
Q

Re Denley (1969)

A

You must have a beneficiary in order for a trust to be valid

OK to have a trust for the purpose of people

51
Q

Dingle v Turner (1972)

A

Charitable trust - poverty

Purpose trusts require public benefit (Charities Act 2011 s4)

For poverty based trusts, OK if there isn’t public benefit as trust purpose can be fulfilled

52
Q

Oppenheim v Tobacco Securities Trusts (1951)

A

Charitable trust - education

Purpose trusts require public benefit (Charities Act 2011 s4)

Personal nexus test: no class of beneficiaries can constitute section of the public if feature that links them is relationship to individual

53
Q

Caffoor v Commissioners of Income Tax (1961)

A

Charitable trust

Not OK for settlor’s family to have priority - they’re not a public class. Fails personal nexus test.

54
Q

AG v Ross (1986)

A

Charitable trust

No political causes!!!

55
Q

Roscoe v Winder (1915)

A

Breach and tracing

If trustee pays own money into account, the intention to repay trust money must be proved

56
Q

Clayton’s Case (1816)

A

Breach and tracing

Mixed funds in a current account

  1. Withdrawals are first in/first out, consistent with payments
  2. Trust may get pro rata share of any assets purchased with money from the account

*rule of convenience - may deviate from it

57
Q

Re Hallett’s Estate (1880)

A

Breach and tracing

Try to presume trustee is honest for as long as possible

If trust money is mixed with trustee’s own money, trustee is deemed to use his own money first

58
Q

Re Oatway (1903)

A

Breach and tracing

Re Hallett: equity imputes intention to fulfill an obligation
Don’t assume trustee has spent beneficiary money until its unavoidable

Trustee can’t make personal claim until they pay beneficiaries
Beneficiaries awarded first charge over shares

59
Q

Re Diplock (1948)

A

Equitable tracing

In common law, can’t trace into mixed funds

Requirements:
1. Fiduciary relationship
2. Identifiable trust property
3. No inequitable result

ALSO: Change in position defence against proprietary remedies

60
Q

Gillett v Holt (2000)

A

Proprietary estoppel

  1. Representation
  2. Reliance
  3. Detriment
    Remedy: minimum award necessary to do justice

Guy leaves school to work on farm he’s been promised. Farmer changes his mind. Guy still gets farm.

61
Q

Crabb v Arun (1976)

A

Proprietary estoppel

Claim is to be satisfied by the minimum award necessary to do justice

62
Q

Re Somerset (1894)

A

Breach and tracing

Fact that beneficiary suggests course of action to trustees will not amount to breach. Beneficiaries still trust trustees will act within powers

63
Q

Re Partington (1887)

A

Breach and tracing

Solicitor trustee exercised influence over non-solicitor co-trustee

64
Q

El Ajou v Dollar Land Holdings (1994)

A

Knowing receipt

  1. Disposal of assets in breach of trust or fiduciary duty
  2. Receipt of assets which are traceable to claimant
  3. Knowledge on the part of defendant that assets are traceable to breach and they’re unconscionable to keep

*personal and proprietary remedies available

65
Q

What is dishonesty

A

Dishonest assistance

RBA v Tan: conscious impropriety
Twinsectra: subjective review of dishonesty
Ivey Genting: what is D’s subjective knowledge and is conduct objectively dishonest
Group Seven: confirms Ivey for civil cases

66
Q

RBA v Tan (1995)

A

Dishonest assistance

  1. Must be a trust
  2. Must be a breach of trust
  3. Must be active assistance in the breach
  4. Stranger must be dishonest
  5. No requirement for trustee to be dishonest

*Only personal remedy available

67
Q

Brinks Ltd v Abu-Saleh (1995)

A

Dishonest assistance

Assistance must be active, not passive

Dishonesty and knowledge are totally separate

68
Q

What is knowledge

A

Knowing receipt

BCCL v Akindele: Does D’s knowledge make it unconscionable for D to retain asset

Baden: knowledge is actual, willful, or willful/reckless (negligent)

Montagu’s Settlement: knowledge depends on want for probity (probity meaning honesty or integrity)

Trusts (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions