Express trusts- Formalities Flashcards
How to transfer legal title for land for a trust?
Must be transferred using a deed and registered with the land registry.
How to transfer shares in a private company in a trust?
Transferor signing a stock transfer form and sending it to the company.
How to declare a trust of land?
Must be proved by writing by some person who is able to declare such a trust.
What is the rule in Milroy v Lord
Transferor must do everything necessary to effect the intended disposition following the correct method for transferring legal title.
Equity will not perfect an imperfect gift
What is constitution of a trust?
refers to the transfer of legal title from one party to another.
What is the effect of constitution?
Once a trust is constituted, the settlor ceases to have any beneficial or legal interest in the trust property.
What was the rule in Re Rose?
Transfer of shares was effective in equity once the transferor has done ‘everything in his power’ to vest the shares in the transferees.
What is the rule in Mascall v Mascall (extension of Re Rose)
Extended Re Rose to registered land. If the correct method of transfer has bee used, the transfer will be irrevocable if the transferor puts the matter beyond their own control.
What is the rule in Pennington v Waine?
equity can perfect an imperfect gift whenever it would be unconscionable for the donor to resile from it.
What is fortuitous vesting?
where the legal title vests in the recipient in another capacity e.g intended recipient of the gift is also the personal representative of the transferor’s estate.
What is the rule in Strong v Bird?
There must be an intention to make an immediate gift (Re Freeland)
The intention must continue until the donor’s death (Re Gonin)
The intended donee becomes an executor (or one of the executors) of the donor’s estate (Re Stewart)
What are donationes Mortis Causa?
a gift made in contemplation of death.
What are the conditions for a valid DMC?
- Gift is made in contemplation of death which the donor believes to be immient.
- the gift is conditional on death.
- there is delivery in the property, the donor must part with dominion (control) of the property by handing it, or something which represents title, to the donee.
What is the difference between income and capital for a property in trust?
Income- what the property bring in
Capital- the actual property
What is a vested interest?
Current right to property.
what is a contingent interest?
conditional upon the occurrence of a certain future event.
What does vested in possession mean?
right to present enjoyment
what does vested in interest mean?
present right to future enjoyment
What is the rule in saunders v vautier?
sole adult beneficiary of sound mind, with a vested interest in the trust property, is entitled to direct the trustee to transfer legal title to them, thereby bringing the trust to an end early.
How has the rule in saunders v vautier been extended?
Can apply to multiple beneficiaries if each beneficiary has a distinct interest in the trust property.
Saunders v vautier and contingent interests/discretionary trusts?
Works but only if they act together with all the other persons that share the beneficial interest in the property.
how to make a trust in land?
must be signed and in writing by the person who is able to declare such trust.
what is the main perpetuity rule for trusts for people?
rule against remoteness of vesting- interests must vest in interest within the perpetuity period of 125 years.
