Equity and trusts - formalities Flashcards

Question

Hw if CT’s fail to look suff cert required for trust -

Answer 1

The y? Will not Josie a trust to achieve justice - Jones v locke This is clear e.g of maxims that equity will not perfect on imperfect gift & equity will not assist a volunteer

Answer 2

Creating a trust is cruel kindness - as it creates overseas obligations for trustee CT’s are happy to create a trust an informal statements but these must be clear that this is the intention of the settlor

Answer 3

Can be created orally- Paul v Constance = money in bank account

Answer 4

No need writing - no form req

Answer 5

Subject matter of trus t

Answer 6

Creation of intervibos interest trust of an interest in land

Answer 7

Must be evidenced in writing - signed by person declaring at time Been the case since - stat of frauds 1677

Answer 8

Declared orally or in writing but until it is in writing = unenforceable

Answer 9

Land always treated differently - perosjnofnorop intr no form just 3 certain items whereas need writing

Answer 10

S.53 1 b lap

Answer 11

A decl of trust respecting land must be mandifest and proved by some writing signed by some person able to declare the trust

Answer 12

1 must be evidenced in writing 2 evidence must be signed by settlor

Answer 13

Applies to freehold , leasehold and eq interest in land - look dealing with eq interest

Answer 14

S.53 1b only deals with creation of trust over an int in land not transfer of legal title and only deals with creation - land nothing else!

Answer 15

So if have trust of land = enforceable cod ev in writing - able to sue and enforce in any shape / fashion but must satisfy 2 req

Answer 16

Come into exist once declared until 2 req satisif = not enforceable

Answer 17

Important tax implications for settlor and Ben claimant

Answer 18

Once trustee excercise his her proves under trusts he / she will not breach

Answer 19

Ben can not enforce trust ie using his : her powers to vary trust = gap btw validity and enforceability

Answer 20

Must contain all relevant terms of trust = 3 cert

Answer 21

Does not need to be form of deed Written evidence signed by settlor = suffice Can be better / other informal doc Written and signed evi can be produced at later date - gardener v rowe

Answer 22

1- 3 cert 2 - actual deck need to be in writing A doc acknowledging a prior oral decl will suffice - Oral - trust but no enforceable

Answer 23

Foster v Gael - childes v childes- McBlain v cross Doesn’t say deed I writing just must be evidenced in writing

Answer 24

Doc must show that trust was intended but need not contain all terms - re Tyler’s trust fund

Answer 25

Declare the trust (land owner) on agents signature will not suffice - re north cliffe ( must be actual owner not agents signature)

Answer 26

Matter of construction - Hw if settlor declares himself trustee of an interest in land for a beneficiary, remember that the settlor will only have to declare trusts of land and complete required formalities of a.53 1b lpa- as settlor as trustee a tleast has legal title to the land- connected to consitituin

Answer 27

Exam may create trust - by email/ text . This is to stimulate discussion on the need to have decl signed . No need to conclude in this but make reason any if it would satisfy req - perhaps compare with e conceyancing of land

Answer 28

Rouchedaul v vousread Form play important role in tracking the conduct of ownership of prop - CT’s extemelt rekebant to allow required form to be avoid

Answer 29

This case is an exception If settlor transferred legal title to trustee - understanding to be held on trust but failed to evidence in writing - CT’s will consider enforceable So if writing fraud make unconditionally result - exception Comes back

Answer 30

Next rule of formality we need to consider is differnet tule and it’s the idea of disposal of eq interests under trusts, or the disposition of eq interest under trust.

Answer 31

Now here we have a rule s.53 1 c of lpa which well look at in a moment but before we do that heres is recap

Answer 32

firs point remeber that an equitable property interest in the same way as lad is. It is intangible forming a chose in action, but neverthless capable of being treated in same manner as all prop. It can be mortgaged, sold, and transferred if you bear this in mind, can grasp topic easily

Answer 33

The owner of an equitable interest in property may confer the benefit of the interest on another person by: (i) assigning the interest directly to a third party; (ii) directing the trustees to hold the property in trust for a third party; (iii) contracting for valuable consideration to assign the interest to another; (iv) by declaring himself to be a trustee for another.

Answer 34

Timpson’s Executors v Yerbury [1936] per Romer L.J | -identified four ways to benefit another person with beneficial interest?

Answer 35

S.53(1)(c) declares that a disposition of an equitable interest or trust subsisting at the time of the disposition must be in writing signed by the person disposing of the same or by his agent thereunto lawfully authorised in writing.

Answer 36

genral fairly strict rule of formality , certaintly in relation to eq interest under express trusts whether land or personalty doesn’t matter, tis about identifying express truts and how eq owners of property are, whatever htheir eq

Answer 37

is so it could be ming vase held on a by trust fpr b, or could be shares held by a on trust for x for life, or could be a house held on trust for a and bon trusts for x y z tenants in common equal shares

Answer 38

The rule here cocnerns people who have eq interest under trusts certainly expressed trust-

Answer 39

MUST BE IN WRITING UNDERLINE SIGNED BY PERSON DISPOSING OR BY AGENT,

Answer 40

SO IF WE HAVE A MING VASE, IF KRIS WANTS TO give away his remainder inters in iming vase e.g 1 mill quid to someeon her can do that. The rermainder interst doesn’t kick into into life interest does has died, so obvs person of remainder interest their interwst icks in .

Answer 41

if its on trustee ming vse v has lfie int on m ing vase, what it means she ahs interest which is VESTED IN POSSESION shes the man or woman of moment entitled to prop and ris line when she dies get sht evase, he has the remainder in the is the remainder man.

Answer 42

,Now Kris and eq prop writing that vase, obvs doesn’t kick in until perso in possession has died and passed over, so person with remainder interest has concrete prop right in eq and is not vested in poss that only for MAN OF MOMENT its called vested in interest if have concrete prop right of sorts and they can dispose of ti assign it do what they want with it.

Answer 43

Now if Kris wants to give away his remainder interest, concrete prop e.g say hes brother he can do that for free or sell b y contract.

Answer 44

but if he just wants to give it away this is called disposition and needs to be in signed writing to comply with s.53 1c

Answer 45

SO ANY EQ WHICH IS VESTED IN POSS/INTER and if u want to give it away has to be in signed writing in accordance to s.53 1 c –

Answer 46

so if me ad v house hold trust for ourselbes, sep shares and wanna give shar to someone else must bein writing to comply with s.53 1 c. so u need this signed writing. This is rule of formality to dispose of eq interest under trust. Pints to note, the dispos must acutall

Answer 47

so if me ad v house hold trust for ourselbes, sep shares and wanna give shar to someone else must bein writing to comply with s.53 1 c. so u need this signed writing. This is rule of formality to dispose of eq interest under trust. Pints to note, the dispos must acutall

Answer 48

allows for direct assignmnent of a chose in action,