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Equity & Trusts Law > Gifts & Trusts > Flashcards

Gifts & Trusts Flashcards

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1
Q

What are the 3 certainties? Case.

A

Knight v Knight:

  1. Intention.
  2. Subject matter.
  3. Object.
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2
Q

What 3 further requirements must a trust meet?

A
  1. Properly declared.
  2. Beneficiary principle.
  3. Rules against perpetuities.
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3
Q

When declaring a trust, must the settlor use the word ‘trust’ in order for there to be certainty of intention? Case.

A

No, provided the intention is clear - Paul v Constance.

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4
Q

What type of wording must/must not be used when declaring a trust in order for there to be certainty of intention? Case.

A

Precatory wording must not be used; an obligation must be imposed - Re Adams and Kensington Vestry.

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5
Q

Will phrases such as ‘the bulk’ of be sufficiently clear for certainty of subject matter? Case.

A

No - Palmer v Simmonds.

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6
Q

Will phrases such as ‘reasonable income’ of be sufficiently clear for certainty of subject matter? Case.

A

Yes, if workable formula available, but probably won’t work for capital - Re Golay.

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7
Q

Must gift/trust property be segregated from like non-gift/trust property? Case. What is the exception? Case.

A

Yes - Re London Wine Co, unless property is intangible - Hunter v Moss.

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8
Q

What is the test for certainty of object for fixed trusts? Case.

A

Complete list test - IRC v Broadway Cottages.

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9
Q

What is the test for certainty of object for discretionary trusts? Case.

A

Given postulant test - McPhail v Doulton.

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10
Q

What guidance was given for the given postulant test? Case/judges.

A

Re Baden’s WT.

  1. Stamp - ‘don’t knows’ means trust fails.
  2. Sachs - postulant must prove he falls within class.
  3. Megaw - if enough fall within class, trust succeeds.
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11
Q

What is the test for certainty of object for power of appointment? Case.

A

Given postulant test - Re Gestetner’s Settlement.

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12
Q

Even where there is certainty of object, for what 2 reasons might a trust fail? Cases.

A
  1. Administrative unworkability - ex parte West Yorkshire Metropolitan CC.
  2. Capriciousness - Re Manisty’s Settlement.
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13
Q

How must a trust be declared? 3 ways, authorities.

A
  1. Personalty - no formality.
  2. Land - signed writing - s53(1) LPA.
  3. Will - signed w/2 witness - s9 Wills Act.
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14
Q

What is the beneficiary principle? Case.

A

Must be ascertainable human beneficiary to enforce the trust - Morice v Bishop of Durham.

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15
Q

4 exceptions to the beneficiary principle? 2 cases.

A
  1. Animals - Re Hooper.
  2. Graves - Re Dean.
  3. Charitable trusts.
  4. Denley trusts.
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16
Q

Why will a charitable trust not violate the beneficiary principle?

A

Enforced by the Attorney-General.

17
Q

What 3 criteria must a charitable trust meet?

A
  1. Charitable purpose.
  2. Public benefit.
  3. Exclusively charitable.
18
Q

What guidelines does the Charity Commission give on ‘public benefit’?

A

Must provide a tangible benefit to the public at large, and benefit must be closely connected to charity’s aims.

19
Q

In what 2 situations will an organisation not have a ‘public benefit’? Cases.

A
  1. Beneficiaries connected by family - Re Compton.

2. Beneficiaries connected by employment - Oppenheim v Tobacco Securities Trust Co.

20
Q

How will a non-charitable purpose trust be saved? Case.

A

If ascertainable beneficiaries derive a tangible benefit, they can enforce the trust - Re Denley.

21
Q

How will a gift without a purpose to an unincorporated association be saved? Case.

A

As a gift to members, as accretion to club funds, to be used according to the club’s rules - Re Recher’s WT.

22
Q

In what 2 ways may a gift with a purpose to an unincorporated association be saved? Case.

A

Re Lipinski:

  1. Under Re Recher’s WT construction.
  2. Under Re Denley construction.
23
Q

What type of association will not be allowed to receive a gift? Case.

A

One which has a business purpose - Conservative & Unionist Office v Burrell.

24
Q

In order not to offend the rule against inalienability of capital, what must a club’s rules allow? Case.

A

It must allow the members to dissolve the club and distribute the capital - Re Grant’s WT.

25
Q

In order not to offend the rule against inalienability of capital, to how long must a purpose trust be limited?

A

21 years.

26
Q

How must chattels be delivered? Case. Alternative? Case.

A

Physical delivery - Re Cole, or by deed - Jaffa v Taylor.

27
Q

How must company shares be transferred? 3 steps.

A
  1. Complete Stock Transfer Form.
  2. Give STF & Share Certificate to transferee.
  3. Transferee must be named on Company Register as new owner.
28
Q

How must land be transferred? 3 steps, authorities.

A
  1. By deed - s52(1) LPA.
  2. Deed complies with s1(2) LP(MP)A.
  3. Transferee registered at Land Registry as new legal owner - s27 LRA.
29
Q

How must an equitable interest under a trust be transferred? Authority/case. Exception? Case.

A

Signed writing - s53(1)(c) LPA; Grey v IRC. Except where held on bare trust, and equitable owner instructs legal owner to transfer legal title to transferee with aim of benefitting that transferee. Equitable ownership moves automatically with legal ownership - Vandervell v IRC.

30
Q

As a general rule, will Equity perfect an imperfect gift? Case.

A

No - Milroy v Lord.

31
Q

What is the ‘every effort’ exception? Case. Case which applies the principle to land?

A

Re Rose - if transferor has done all legally required of them, Equity will deem gift to be perfect.

32
Q

What is the exception in Pennington v Waine?

A

Equity will perfect gift where ‘unconscionable’ for transferor to resile. Limited circumstances - transferor told transferee they didn’t need to do anything, and aim of transfer was to make transferee Company Director.

33
Q

What is the exception in Strong v Bird?

A

Where transferor intended to make immediate gift, intention remained unchanged until death, and transferee becomes transferor’s PR, transferee entitled to keep the property.

34
Q

What is the exception in Choithram v Pagarani?

A

No difference between declaration of self as sole trustee and declaration of self as one of a number of trustees. If the transferor’s conscience is affected, Equity deems it unconscionable for him to resile from the gift.

Equity & Trusts Law (3 decks)

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