Formalities

Question 1

Transfer of a gift

Answer 1

Legal title to be transferred (constitution)
Identify the legal rules for the relevant property

Equity may perfect this transfer by:

* every effort principle
* rule in Strong v Bird (1874)
* donatio mortis causa
* unconscionability/estoppel

Question 2

Grey v IRC

Answer 2

Transfer of equitable interest to avoid stamp duty - An attempt to make an oral disposition of a subsisting equitable interest is void for want of writing.

Question 3

Jones v Locke

Answer 3

Father in trouble with wife, then promises check to baby. That this was not a valid declaration of trust as there was insufficient certainty of intention. Equity will not create a valid trust out of an imperfect gift.

Question 4

Vandervell v IRC

REVISION TIP: Examiners often use words that are ambiguous, such as ‘give’, ‘transfer’, ‘convey’. This is because they want students to consider whether Vandervell applies.

Answer 4

On the advice of his accountant, when Mr Vandervell had transferred the shares to the Royal College of Surgeons an option to repurchase was granted to a trust company. At the time, Mr Vandervell had failed to specify the objects of the trust and therefore it was held on resulting trust for him.

The option was then exercised and declared to be held for the benefit of the children’s settlement. The Court of Appeal held that when the option was exercised the resulting trust of that property (p. 68) ceased to exist. Therefore the property now held for the children was a new trust which required no formalities.

Question 5

TRUSTS OF PERSONALTY - FORMALITIES

Answer 5

Paul v Constance

Intervivos trusts may be declared informally, orally or by conduct unless required to be in writing.

Question 6

Paul v Constance

Answer 6

a divorced man shares jt accct with another women - placed 950 & bingo winnings - crts held there was a clear intention to create a trust

Question 7

TRUSTS OF REALTY - FORMALITIES

Answer 7

S53 (1)(B) AND (C) LPA 1925: Certain declarations of trust must be in writing or evidenced in writing
S53 (1)(B LPA 1925:

Question 8

S53 (1)(B LPA 1925:

Answer 8

1) evidenced in writing
2) signed by the settlor in person
3) if originally oral the date would be the date of the oral declaration
4) unenforceable if not complied with (but not void-to prevent trustee from gaining unjust enrichment)

Question 9

S53 (1)(c) LPA 1925: Disposition of equitable interest

Answer 9

1) evidenced in writing

2) signed by the settlor in person

Question 10

Timpsons Executors v Yerbury

Answer 10

The equitable interest in property in the hands of a trustee can be disposed of by the person entitled to it in favour of a 3rd party in any one of four different ways.