Creation of trusts

Question 1

In Re Snowden

Answer 1

elderly lady tells her brother that he would “know what to do”

Question 2

McPhail v Daulton

Answer 2

Fund to provide for employees and ex-employees of a company.
Presence of mandatory language.

The test for certainty of beneficiaries in discretionary trust is that it must be possible to say of any given individual that he is, or is not, within the class

Question 3

R v Clowes

Answer 3

Declaration in a brochure that money will be held in a designated client account

Question 4

Re Golay

Answer 4

“Reasonable income” held to be sufficiently certain

Question 5

Re London Wine

Answer 5

Subject matter not sufficiently certain because of lack of segregation of bottles

Question 6

Hunter v Moss

Answer 6

Defined fractional share of a clearly identified whole (shares) held to be sufficiently certain

Question 7

IRC v Broadway

Answer 7

In fixed trusts the definition of the beneficiaries must be both conceptually certain and there must be also evidential certainty of who is within the class

Question 8

Re Baden’s

Answer 8

If there is conceptual certainty, a discretionary trust would not be invalidated by the absence of evidential certainty

Question 9

R v District Auditor, ex p West Yorkshire MCC

Answer 9

A discretionary trust will also be invalid if it is administratively unworkable because of the sheer size of the class of potential beneficiaries

Question 10

Paul v Constance

Answer 10

Words repeated over a period of time can amount to an effective declaration of trust

Question 11

Choitram v Pagarani

Answer 11

Words of gift by the settlor to himself amount to a constitution of trust by declaration

Trust property must be vested in the trustee (one sufficient even when there is more than one trustee) by means of an effective transfer of the legal OR beneficial title

Question 12

Re Vandervell

Answer 12

Declaration of trust by conduct is possible

Question 13

Don King v Warren

Answer 13

Overarching intention to create a trust can suffice for an effective declaration of trust

Question 14

Re Rose

Answer 14

Transfer is complete in equity when the transferor has done everything in his power to transfer the legal title to the transferee

Question 15

Pennington v Waine

Answer 15

Transfer complete in equity when it would be unconscionable for the transferor to recall the gift to the transferee

Question 16

Re Ralli

Answer 16

Constitution through coincidental receipt of the trust property by the trustee

Question 17

Milroy v Lord

Answer 17

equity will not construe an ineffective transfer as a declaration of trust by the settlor