Formalities

Question 1

Timpson’s Executors v Yerbury

Answer 1

Ratio: 4 things constitute a ‘disposition’ of a subsisting equitable interest:

1. A direct assignment to a third party
2. A contract for valuable consideration to assign the equitable interest
3. A direction to the trustees to hold the property for a new beneficiary
4. Declaration of trust over the interest (sub-trust)

Question 2

Neville v Wilson

Answer 2

Ratio: If a contract for valuable consideration is made to assign an equitable interest to third party which is enforceable by specific performance, a constructive trust arises in favour of the intended transferee. Since constructive trusts do not need to comply with s.53(1)(c) this contract would not need to either.

Question 3

Grey v IRC

Answer 3

Ratio: In the case of a direction to a trustee to hold property on trust for another, non-compliance with s53(1)(c) makes the transaction unenforceable rather than void.

Facts: Trustees held 18,000 shares on trust for Mr Hunter. Mr Hunter orally directed the trustees to hold the shares on trust for his grandchildren, instead of himself and later executed a deed confirming this. For taxation purposes, it was necessary to determine whether the equitable interest passed at the oral declaration or under the deed. It was concluded that the interest passed under the deed. Note that this was an exceptional circumstance. The interest would not likely have passed if there had not been an out of court settlement.

Question 4

Vandervell v IRC

Answer 4

Ratio: A direction to trustee to transfer legal title to a new owner amounts to a collapsing of the trust. No compliance with s53(1)(c) is required.

Facts: Vandervell orally instructed his trustee to transfer the shares held on trust for him to the Royal College of Surgeons. IRC argued that this was void for non-compliance with s53(1)(c). HoL held that transference of legal and equitable title to a third party constitutes a collapsing of the trust and thus no written disposition of the subsisting equitable interest will be necessary.

Question 5

Nelson v Greening and Skyes (Builders) Ltd

Answer 5

Ratio: Sub-trusts are declarations of new trusts and thus s53(1)(c) does not apply.

Question 6

Sheffield v Sheffield

Answer 6

Ratio: Sub-trusts are declarations of new trusts and thus s53(1)(c) does not apply.