EXAM NOTES - Certainties, Formalities, Constitution Flashcards
general structure?
for each item of property discuss the owner’s
- title
- intention
- property
- requirements to do what they intend
- the problem
- exceptions to the general rule
what are the three certainties?
Knight v Knight
- intention
- subject matter
- objects
how do you decide certainty of intention
- imperative words not precatory words
- look at the will as a whole and in context
- look to the words and conduct of the parties if necessary eg Paul v Constance “the money in my bank account is as much yours as mine”
what are the rules on certainty of subject matter?
- Sprange v Barnard must be certainty at the outset; cannot create a trust leaving money to X with “what’s left” at their death going to Y. Purported trust grafted onto an outright gift
- Palmer v Simmonds must identify exact property; “the bulk of my estate” is not sufficient
- Re London Wine – a trust of unidentified tangible property will fail
- Hunter v Moss – a trust of unidentified intangible property (here shares) will be valid
- Boyce v Boyce – must be certainty of which beneficiaries get which share. If not, resulting trust
- Re Golay -a “reasonable income” is a valid amount and beneficiary could chose one house out of many
what happens if there is no certainty of subject matter? How can this happen?
- If the property itself is uncertain, no trust
- If the ‘trust’ is really a gift, that’s how it will be treated
- If the beneficial interests are uncertain, resulting trust
- No uncertainty of subject matter if the means for determining it are laid down
what states certainty of objects is necessary?
Morice v Bishop of Durham
How is certainty of objects found?
- Different depending on the type of trust
- Fixed interest trusts – strict ‘list’ test
- Certainty of objects of powers - in/out test
- Discretionary trusts – the in/out test following McPhail v Doulton
what is the list test?
IRC v Broadway Cottages Trust must be possible to draw up a complete list of the beneficiaries
what is the in/out test
Re Gulbunkian’s Settlement Trusts –
o Can it be said with certainty whether any given individual is a member of the class?
o Trust does not fail because it is impossible to ascertain every member of the class
what are the two kinds of certainty?
- Conceptual certainty – precision of language used to define the class of beneficiaries
- Evidential certainty – how well you can prove an individual fits into the class of beneficiaries
is ‘relatives’ a conceptually certain term?
yes Re Baden’s (No 2)
what happens if trust is for a group of people and it fails for some?
you can sever Re Leek and Re Gulbenkian
how does the test apply to gifts subject to condition precedent?
Re Barlow’s WT – test for certainty is less strict
How can legal title to property be transferred?
Milroy v Lord
- Absolute gift
- Transfer to a trust
- Self-declaration of trust by S for B’s benefit
how can equitable interest be transferred?
Timpson v Yerbury
- Assign to third party directly
- Direct trustees to hold on trust for third party
- Contract for valuable consideration to assign the interest
- Self-declaration of himself as trustee for B