Completeiy And Incompletely Constituted Trust Flashcards
When is a trust property said to be completely constituted?
When the property I had become vested in the trustees for the benefit of the beneficiaries
What is the effect of this?
The beneficiaries can now to sue to enforce
Incompletely trust
Only a beneficiary that has given value can sue for specific performance
And why is this?
Equity would not aid a volunteer(someone that has not given valuable consideration)
Case?
It is based on which maxim?
Jeffreys v Jeffreys
Equity will not aid a volunteer’
Are husband , wife and legitimate issues of marriage regarded as volunteers
No
Methods of constituting trust
The locus classicus for this is?
Milroy v Lord
What was held in that case
That provided the settlor: donor has done everything required of him to execute the transfer and render the settlement binding, equity regards it as complete
Case?
Re rose
Why are the methods of constituting a trust?
By way of conveyance to trustee
By a declaration of trust
A the settlor or door legal owner
What happens where the settlor is legal owner of the property?
He must take all due steps within his power to cest the property in the trustees, using the appropriate methods and instruments of transfer
This deed of transfer include?
A deed of grant, freehold land, a deed of assignment for leasehold, delivery or deed of gift for chattel, execution of a proper share transfer form for registered shares
Where a person intends to make a direct gift to property to another ?
It is the same position
Effect of the rule
The first effect?
There was no valid gift where an intending donor endorsed or and signed on a lease a not not under a seal ‘This deed and all thereto belonging I give to E.B Richards from this time forth , with all the stock-in - trade’
Case?
Richards v Delbridge
What did the courr hold?
No legal interest had been passed
2?
There is no valid gift where the owner of the shares merely endorsed on the share certificate a note that he had assigned it to his daughter
Case?
Antrobus v Smith
Is there a legal interest passed
No and it didn’t amount to a declaration trust
3.
Re Rose case
Summary of the rule?
In order to completely constitute a trust?
1.
The settlor must have legal interest
2.
The internet just have been effectively vested in the trustee or donee
3
Provided the settlor or donor has done everything required of him to execute the transfer then the trust or gift will be complete
Until the donee legal title is complete what happens?
The donor holds the property as trustee for the donee
B Settlor or donor equitable owner
Where the settlor or donor has only an equitable interest in the property how do one effectively constitute a trust?
By assigning it to other trustees in writing or by directing his own trustees to hold the interest for the benefit of the donee
In writing in accordance with?
S. 9 statutes of fraud, s.78(1)(c) PCL
Is it necessary for the donor to procure a transfer of the legal estate
No
Case?
Kekewich v Manning
What did the court hold?
Shares were held on trust for A for life, remainder to B, B by deed assigned her equitable interest . All had been done that was necessary to direct the assignor of her interest
Another case?
Gilbert v Overton
What was held
that a tenant under an agreement for a lease had effectively constituted a trust of his equitable interest by assigning to trustees upon certain trust
DECLARATION OF TRUST
D
