Gifts And Trusts; Three Certainties; Constitution Of Express Trusts

Question 1

Milroy v Lord🎁❌

Answer 1

Different ways a legal owner can dispose himself of his property:
Outright gift.
Transfer on trust.
Self declaration of trust.

Leading case showing that equity will not perfect an imperfect gift.

Question 2

Re Cole

Answer 2

Not enough just to show intention, you must also deliver it to the person, if this is impractical you must do it by deed. Husband showed a table to wife and said its all yours. Not enough to show intention, he also had to deliver the property.

Question 3

Glaister-Carlisle v Glaister-Carlisle. 🐩

Answer 3

Intention to transfer legal title must be clear and unoquivical. Husband and wife having argument. He throws dog at wife and said here, keep the bitch. This was not manifested as a clear intention. Actions were heat of the moment anger.

Question 4

Jones v Lock👶🏼

Answer 4

Mr Roberts had a cheque payable to him for £900. He handed the £900 cheque to his baby as a birthday present and said, I give this to baby. He died a few days later. The cheque had not been endorsed to the new owner. Tried to argue self declaration of trust. Equity will not perfect an imperfect gift. Equity will not treat an imperfect gift as self declaration of a trust.

Question 5

Re Rose

Answer 5

Three conditions for Re Rose to be invoked and perfect an imperfect gift in equity:
Correct method of transfer used.
Does all he can to make transfer happen.
Documents must end up with registrar of the company.

Question 6

Mascall v Mascall🙌

Answer 6

Made Re Rose principles applicable to land and adjusted test to:
Transferor must use correct method.
Need not do everything within power to effect transfer but…
Transfer must be irrevocable by transferor(out of their hands).

Question 7

Zeital v Kaye

Answer 7

The share certificates were missing. The transferor should have sent off for new certificates.

Question 8

Pennington v Waine

Answer 8

Testator gave documents to agent. Testator told donee of intentions. Agent assured them there was no more they could do. Donee relied on this. Unconscionable to deny gift because of agents assurance and the donees reliance on the ineffective transfer.
Courts say it’s a very irrational case - only likely to be used when facts match exactly.

Question 9

Gillet v Holt🐖🐄🐏🐓

Answer 9

Claimant worked on farm for 40 years - no education, no pension because he believes he was to inherit the farm. Acted in detriment. Would be unconscionable to deprive gift. Given farm house. Proprietary estoppel. Minimum to do justice.

Question 10

Cain v Moon⚰

Answer 10

Death bed gift. Gift must be made in contemplation of death, which donor believed to be imminent. Gift must be conditional on death. There must be delivery of property. If the gift is imperfect, the gift will be perfected.

Question 11

Strong v Bird 👵🏼

Answer 11

Bird borrowed £1000 from grandmother. She was living with Bird and paying rent. Bird agreed to pay back in instalments. She expressly forgave debt after 2 months and began paying rent. She continued until her death. Bird was executor of will. Claimant sued Bird for outstanding debt on basis that oral. Release from a debt is ineffective. Courts held that due to her continuing intention, the imperfected release from debt was perfected. For this to work there must be:
Intention to make an immediate gift.
Intention continues until death.
Donee acquires legal title as personal representative.

Question 12

Re Rallis 👨‍👩‍👧

Answer 12

Man died leaving property to wife for life and daughter in remainder. Daughter dies so husband is trustee of marriage settlement concerning after acquired property. Mother dies so husband brings action as to wether he owns fathers residuary estate under daughters will. Trust had been fully constituted by accident.

Question 13

Choithram v Pagarani

Answer 13

Pagarani leaves wealth to charity. He is trustee of that charity. He dies before successfully transferring wealth to charity’s other trustees. As the legal title was already vested in one of the trustees (Pagarani) the legal title spread to the other trustees - effective self declaration of trust.

Question 14

Re James

Answer 14

Extended rule in Stone v Bird to apply to administrators, however this is doubted academically and I utter in Re Gonin as when you make someone an executor you intend to give them the legal title, this is not the case of courts appointed administrators.
An imperfect gift or real property made by a donor to his housekeeper was perfected when she herself was appointed as one of two administrators of his estate.

Question 15

Thomas v Times Book Co 📖

Answer 15

Thomas was an author who lost manuscript. Told BBC producer that if he found it he could keep it. BBC producer did find it. Held there was a gift. Continuous intention, finding was the delivery.
Delivery and intention just coincide. Intention can be continuous until revoked.

Question 16

Knight v Knight 👴🏼👦🏼👦🏻👧🏻

Answer 16

Richard Knight made a will passing estate down male family line. Estate went to Richard knight who left estate to his brother Thomas Knight and descendant males. Thomas died intestate and estate went to daughter Charlotte. Charlottes brother Edward claimed Thomas was bound to make strict settlement to him. Richard argued no trust created and properties went to went to Thomas in absolute possession and onto Charlotte.

Question 17

Richards v Delbridge📄

Answer 17

Richards employed family member, Edward. He wanted to hand over his business to Edward showing his intention to make this gift by endorsing on the business lease a memorandum stating that it belonged to Edward. The gift failed because it was imperfect. There was no express declaration of trust it was intended as an outright gift and motto be held on trust.

Question 18

Lambe v Eames 👵🏼👨‍👩‍👧‍👦

Answer 18

Testator gave all estate to widow stating, to be at her disposal in any way she may think best for the benefit of herself and her family. Held that a trust was not to be found unless intention to create a trust was clear, in this case it was not.

Question 19

Re Adams and Kensington Vestry

Answer 19

Testator left property to wife absolutely in full confidence that she will do what is right as to the disposal between his children in her lifetime or by will. Held she took the property free from any trust in favour of the children.

Question 20

Comiskey v Bowring-Hanbury

Answer 20

Words, in full confidence, created a trust - testator left estate to his wife absolutely in full confidence that she will make such use of it as I should have made myself and at her death she will devise it to such one or more of my nieces as she should see fit. Words held not to impose a trust on the donee, court will look at circumstances not just words.

Question 21

Paul v Constance

Answer 21

Judge found intention to create a trust where a man told his cohabitant that the money in his bank account was as much hers as his and ordered half the moe t to be paid to her after his death, rather than to his wife. He essentially had declared himself a trustee of the money’s for himself and the cohabitant. This was an oral declaration of trust.

Question 22

Sprange v Barnard

Answer 22

Testatrix in her will gave her husband £300 for his sole use and on his death the remaining part is to be divided between her brothers and sisters. Held there was no certainty as to property so there was non trust. Trust must be certain at moment of creation.

Question 23

Re Steele’s Will Trust 💎

Answer 23

Solicitor drafted trust deed for client but used an outmoded precedent that featured precatory words - I request my son to do all in his power. There should have been no trust because of lack of certainty but judge concluded that deliberate use of precedent demonstrated necessary intention to declare a trust of a diamond necklace.

Question 24

Re Kayford

Answer 24

Mail order business in difficulty and accountant decided cut omens pay in advance for goods. Company went into insolvency and customers wanted money back. Held intention accountant demonstrated was to segregate money so it could be attributed to the customers. Intention to create trust without using the word trust.

Question 25

Midland Bank v Wyatt

Answer 25

Husband and wife declared trust in respect of matrimonial home. Beneficial interest was to be shared equally between wife and daughters. Property mortgaged to midland bank and husband borrowed money on security of family home. He did not inform bank of trust. Bank sought to sell property to recover debt. Held there was no real intention create a trust. Only did it to protect family home from bank so trust void. Sham trust fails.

Question 26

Palmer v Simmonds

Answer 26

Testatrix left residue of estate by will to friend subject to proviso that if he died childless he will leave the bulk of the residuary estate to four named people. Reference to bulk was too uncertain to create a trust. Uncertainty of subject.

Question 27

Re Golay

Answer 27

Testator set up trust which Beneficiary was to enjoy one of his flats during her lifetime and to receive a reasonable income. What is a reasonable income? Too uncertain? Courts held that from other areas of law they could work out a method to determine a reasonable income.

Question 28

Hunter v Moss 📈

Answer 28

H entitled under employment contract with M, to claim 50 shares out of 950 shares in a company. M did not specify which shares. M sold all shred keeping proceeds. H tries to claim some proceeds. Court held there was a valid trust since shares are identical and indistinguishable any 50 were capable of forming subject matter.

Question 29

Boyce v Boyce 🏡🏠

Answer 29

Property consisted of 2 houses. One of the beneficiaries was to choose which one she wanted. But she died without making a selection so entire trust failed for uncertainty. Testator has prescribed a method of allocation which has subsequently become impossible.

Question 30

IRC V Broadway Cottages Trust 📝

Answer 30

You must be able to compile a complete list of beneficiaries in advance for there to be certainty. Complete list test.

Question 31

Gold v Hill

Answer 31

Under prison rules the prison governor must hold onto prisoners cash. Prisoner asked for interest on top of original sum. This was not a trust as there was no intention therefore the governor had no duty to invest in the money and so does not owe the inerrant.

Question 32

Anthony v Donges

Answer 32

Testator directed that his widow receive such minimal part of the estate that she might be entitled under English law. There is no entitlement and so the trust was void for uncertainty.

Question 33

Re London Wine Co🍷

Answer 33

Claimant bought wine which was stored in warehouses, not segregated or identified in any way. To create a trust it must be possible to ascertain with certainty not only what the interest of the beneficiary is to be but also the property. A trust of an unidentifiable tangible property will fail. Insufficient certainty of subject matter.

Question 34

Re Goldcorp Exchange

Answer 34

Claimants purchased gold bars but had not had them delivered. On insolvency they tried to claim their share of the bars. Held there was no trust for those who had not had their bars segregated as there was no identifiable property to which any trust could attach.

Question 35

Burrough v Philcox Trusts

Answer 35

A power in the nature of a trust arises where an instrument is drafted to give a person a power of selection among a class, but if the power is not exercised or fails to deal with all the property, there must be an equal division amongst the class.

Question 36

Curtis v Rippon

Answer 36

Testator left all property to wife trusting she would make such use of it as should be for her own and their spiritual good remembering also the accordance of God and the poor. Held failed due to uncertainty and ascertained beneficiary took the entire interest.

Question 37

Re Fry

Answer 37

Where the donor has the power to do more but does not, re Rose does not apply.

Question 38

Fletcher v Fletcher

Answer 38

Fletcher created trusts for benefit of his illegitimate children. Trustees refused to give children all portions of trust. Trustee claimed grantor orally instructed to keep terms of trust confidential. Held terms of trusts may regulate amount of info which trustee must give but beneficiary is always entitled to such info as it is necessary for them to enforce their rights to prevent beach of trust.

Question 39

Pullan v Koe

Answer 39

Husband and wife would settle wife’s after acquired property of value £100 upwards. Wife failed to settle property. She invested in bonds. Beneficiaries claimed property interest in the bonds. Beneficiaries could obtain specific performance of covenant.

Question 40

Re Plumptre’s MS

Answer 40

No issue of marriage. Husband made gift of stock to wife. On death of wife intestate, intended beneficiaries, wife’s next of kin, attempted to enforce covenant. Gift should have been settled on terms of settlement, not given as an outright gift. Next of kin could not enforce covenant in equity because they were volunteers. The gift went back to the husband due to her intestacy.

Question 41

Re Pryce

Answer 41

Wife’s after acquires property ought to have been caught be the covenant. There were no issue of the marriage and beneficiaries in default of issue were volunteers. Trustees ought not to take any steps to enforce the covenant.

Question 42

Re Kay

Answer 42

Voluntary settlement by spinster and married much later, children of later marriage were volunteer beneficiaries. Trustees ought not to take steps to enforce the covenant.

Question 43

Re Cavendish-Browne

Answer 43

Catherine made a voluntary settlement containing covenant to transfer trustees all property. She dies without having settled property to which she was entitled in trust. Trustees able to recover from administrators damages for breach of covenant.

Question 44

Curtis v Pulbrook

Answer 44

Had shares in company and trustee in family settlements. He breached his trust duties. Beneficiaries wanted charging order over 445 shares. He said he had transferred shares to wife and daughter. Held the shares had not been effectively gifted at law as he had no such power. Gifts were not perfected by equity: he had not done all he could; there had been no detrimental reliance; he had not declared himself as trustee of shares for the benefit of his wife and daughter.

Question 45

Re Gestetner

Answer 45

Certainty holds if you can say with certainty of an individual is in or out of a discretionary trust class of beneficiaries.

Question 46

Re Gulbenkian

Answer 46

Power not void for uncertainty if it could be said with certainty whether any given individual was or was not a member of a class. Does not fail because it was possible to ascertain every member of the class.

Question 47

Re Cook

Answer 47

Covenant not to sell valuable painting. Cook have painting to one of his wives who wanted to sell it. Beneficiaries could not enforce covenant because they were not within marriage consideration