EQUITY & TRUSTS

Question 1

To create a valid trust you must satisfy the three certainties

Answer 1

Knight v Knight

Question 2

Precatory words are not sufficient for certainty of intention

Answer 2

Lambe v Eaves

Question 3

Certainty of intention - ‘in full confidence’ held to only impose a moral obligation

Answer 3

Re Adams

Question 4

Certainty of intention - ‘absolutely in full confidence’ deemed sufficient

Answer 4

Comiskey v Bowring-Hanbury

Question 5

Solicitor followed an outmoded precedent which no longer satisfied certainty of intention. Held to be valid because of the deliberate use of precedent

Answer 5

Re Steele’s Will Trusts

Question 6

Certainty of subject matter: ‘the bulk of my said residuary estate’ not sufficient

Answer 6

Palmer v Simmonds

Question 7

Certainty of subject matter: ‘reasonable income from my other properties’ was held to be certain because reasonable is a yardstick that the court can employ to calculate what that would be

Answer 7

Re Golay

Question 8

Certainty of subject matter: segregation of tangible property is required

Answer 8

Re London Wine

Re Goldcorp Exchange

Question 9

Certainty of subject matter: segregation of intangible property is not required

Answer 9

Hunter v Moss (shares)

Question 10

Certainty of subject matter: a trust of the residue of an estate. Property is left to brother on terms that ‘at his death anything that is left, that came from me’ was to pass to specified persons. Held, valid. The brother had a life interest, the captial could not be touched by the brother thus the subject matter was certain at the date the trust was created.

Answer 10

In the Estate of Last.

Question 11

Certainty of subject matter: a trust of the residue of an estate. Wife leaves to the husband stock for his own use on terms that ‘the remaining part of what is left that he does not want for his own wants’ should be bequeathed to specific individuals. Held: not valid due to total uncertainty of subject matter

Answer 11

Sprange v Barnard

Question 12

Certainty of subject matter: beneficial interest must be certain. Two houses left to sisters. Maria was to choose a house and the other was to be held on trust for Charlotte. Maria predeceased the testator prior to making a selection. Held: the trust failed after this.

Answer 12

Boyce v Boyce

Question 13

Certainty of object: Fixed Trust and complete list test

Answer 13

Morice v Bishop of Durham & IRC v Broadway Cottages

Question 14

Certainty of object: Discretionary Trust and ‘any given postulant test’

Answer 14

Lord Wilberforce in McPhail v Doulton & conceptual clarity. adopted from Re Gulbenkian and rules for powers.

Question 15

Certainty of object: Discretionary Trust - examination of any given postulant test

Answer 15

Re Baden No 2 Stamp is strict, Sachs is Slack, Megaw is in the middle.

Question 16

Conceptual Certainty - Fixed and Discretionary: ‘deserving relatives’ conceptually uncertain

Answer 16

Public Trustee v Butler

Question 17

Conceptual Certainty - Fixed and Discretionary: other cases

Answer 17

Re Baden No 2, Re Barlow, Re Wrights Will Trust

Question 18

Evidential Certainty only applies to fixed trusts

Answer 18

Sachs in Re Baden No 2

Question 19

Evidential uncertainty can be made certain through the use of an expert

Answer 19

Re Tucks Settlement Trust

Question 20

Certainty of Object - administrative unworkability/capriciousness - class of 2.5 million too large

Answer 20

Ex p West Yorkshire Metropolitan CC

Question 21

leading case on constitution. 3 options for constitution: absolute gift; transfer of legal title to a trustee; self-declaration of trust

Answer 21

Milroy v Lord. the settlor must have done ‘everything…necessary in order to transfer the property and render the settlement binding’. In this case, shares needed signing of transfer forms and registration.

Question 22

Father declares trust for son but not valid because endorsement is needed for cheques

Answer 22

Jones v Lock

Question 23

the lease had not been legally assigned - strict application of Milroy v Lord so no trust

Answer 23

Richards v Delbridge

Question 24

Expansion of the rule. the transferor had done ‘everything in his power’ to transfer the shares

Answer 24

Re Rose

Question 25

Expansion of the rule. the transferor had done ‘everything in his power’ to transfer the shares

Answer 25

Re Rose

Question 26

equity has tempered the wind to the shorn lamb by utilising the constructive trust. a broader approach may be taken where it is unconscionable for the donor to deny that a transfer occured

Answer 26

Pennington v Waine. Virgo suggests this should be viewed as proprietary estoppel but there isn’t really detriment!

Question 27

Attempt to qualify Pennington v Waine

Answer 27

Zeital v Kaye

Question 28

Exception to the rule that equity will not assist a volunteer - fortuitous vesting

Answer 28

Strong v Bird: if incomplete gift made during donors lifetime and donee then made executor to donor’s will the gift is complete and beneficiaries have no claim on property

Question 29

Extension of rule in Strong v Bird to trusts

Answer 29

Re Ralli’s WT

Question 30

Exception to the rule that equity will not assist a volunteer: Donatio Mortis Causa rules (gift made in contemplation of death, conditional on death and there is delivery of the property

Answer 30

Cain v Moon

Question 31

Keys sufficient as delivery of property in DMC

Answer 31

Sen v Heddley

Question 32

Savings book sufficient to represent money in savings account for DMC

Answer 32

Birch v Treasury Solicitor

Question 33

SECRET TRUSTS: FST communication must be before death

Answer 33

Ottaway v Norman; Wallgrave v Tebbs

Question 34

HST communication must be before or contemporaneously with the will

Answer 34

Re Keen; Blackwell v Blackwell

Question 35

FST & HST acceptance can be expressed through acquiescence

Answer 35

Ottaway v Norman; Moss v Cooper

Question 36

A FST with precatory words in the will can only be HST

Answer 36

Irvine v Sullivan

Question 37

ST beneficiary can witness the will

Answer 37

Re Young

Question 38

Formalities required for ST of land?

Answer 38

Ottaway v Norman (FST) not mentioned

Kasperbuar v Griffiths (HST) required

Question 39

Disclaimers

Answer 39

Blackwell v Blackwell - should appoint a new one

Re Maddock - can’t exist if trustee disclaims

Question 40

Per Megarry LJ ‘Dehors the will’

Answer 40

Re Snowdon

Question 41

HS trustee can’t be a beneficiary

Answer 41

Re Rees’ WT

Question 42

Addition to ST must be communicated. (fresh communication in case of codicil)

Answer 42

Re Cooper

Question 43

Oral communication of FST valid in NZ

Answer 43

Brown v Pourau

Question 44

ST communication can be in a sealed letter left for after death

Answer 44

Re Keen