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Equity & Trusts > Intention, Subject Matter and Formalities > Flashcards

Intention, Subject Matter and Formalities Flashcards

1
Q

What is a source for the definition of a trust?

A

Keeting and Sheridan

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2
Q

What is the definition of an express trust?

A

A trust which is set up intentionally by the settlor, often created in a written document called a ‘trust instrument’.

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3
Q

What is the personal right provided by an equitable interest?

A

The right for the beneficiary to enforce against the trustee their duties and to seek compensation for any breaches.

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4
Q

What are the two elements of the proprietary right provided by an equitable interest?

A

(a) A proprietary right can be enforced not only against the trustee but also against successors in title, and (b) the beneficiary’s interest is itself an item of property.

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5
Q

What is the definition of a fixed trust?

A

A trust where the terms of the trust define the share of the trust property that the beneficiary will receive.

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6
Q

What is the definition of a bare trust?

A

A trust where the trustees hold on trust for a sole adult beneficiary possessing full mental capacity absolute (with no limitations or conditions attached).

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7
Q

What is the relevance of a bare trust?

A

The beneficiary can end the trust at any time by demanding that the trustees transfer legal title to them so that they become the outright owner (Saunders v Vautier).

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8
Q

What is a discretionary trust?

A

Discretionary trusts give trustees discretion as to the amounts any beneficiary may receive and/or whether particular beneficiaries receive anything at all.

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9
Q

What is a vested interest?

A

One where the beneficiary exists and does not have to satisfy any conditions imposed by the terms of the trust before becoming entitled to trust property.

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10
Q

What is a contingent interest?

A

An interest that is conditional upon the happening of some future event that may or may not happen.

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11
Q

What are the meanings of ‘in possession’ and ‘in remainder’?

A

An interest is in possession if a beneficiary can enjoy that interest immediately; it is in remainder if it cannot be enjoyed immediately but instead a beneficiary must wait until some other beneficiary’s right to enjoy expires.

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12
Q

What is the meaning of an absolute interest?

A

It means a beneficiary will receive the trust capital.

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13
Q

What is the meaning of a limited interest?

A

It means a beneficiary will only be entitled to the trust income.

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14
Q

What three conditions must be satisfied per Saunders v Vautier for a trust with multiple beneficiaries to be ended by the beneficiaries themselves?

A

All the beneficiaries under the trust who could possibly become entitled: (a) are in existence and ascertained; (b) are over 18 and of sound mind; and (c) all agree.

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15
Q

What does s9 of the Wills Act 1837 require?

A

A will must normally be made in writing and signed by the testator in the joint presence of two witnesses, who must then witness the testator’s signature by signing the will in their presence.

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16
Q

What do you call a gift of freehold land (or ‘realty’) in a will?

A

A devise.

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17
Q

What do you call a gift of personal property or personalty in a will?

A

A legacy or bequest.

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18
Q

What do you call a gift of money in a will?

A

A pecuniary legacy.

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19
Q

What do you call a gift in a will which is simply what remains about the giving of other gifts and/or payment of tax?

A

A residuary gift.

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20
Q

What is it called where a gift fails because the testator no longer possesses the specified property when they die?

A

Ademption

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21
Q

What is it called when a gift fails because the beneficiary dies before the testator?

A

A lapse.

22
Q

In what three ways may a will be revoked?

A

(a) By marriage of the testator; (b) by destruction of the will with intention to revoke; (c) making a new will which deals with the same property as the first will.

23
Q

There is some uneasiness around applying equitable principles which involved in the context of family trusts to large-scale commercial situations typically governed by contract law.

A

Target Holdings

24
Q

Which case suggested conscience of the legal owner was the basis of all trusts?

A

Westdeutsche Landesbank

25
Q

What are the formalities for transferring a legal title in land?

A

It must be done by a deed (s52(1) LPA 1925), with a valid deed specified in s1 LPMPA 1989.

26
Q

What is a valid deed?

A

(a) The document must be identified as a deed or stated to be signed as a deed and (b) the person making the deed signs the document in the presence of a witness who also signs it (s1 LPMPA 1989).

27
Q

If the land is registered, which form constitutes the deed?

A

Form TR1

28
Q

What are the three steps involved in the transfer of non-CREST shares?

A

(a) Transferor signs a stock transfer form (s1 Stock Transfer Act 1963); (b) transferor hands form and share certificate to transferee; (c) transferee sends both documents to the company to be registered.

29
Q

Titles to chattels are passed by physical delivery of the asset to the transferee, or by a deed.

A

Jaffa

30
Q

How may a settlor benefit another?

A

(a) By outright gift;
(b) By transfer to trustees to hold on trust;
(c) By declaration of self as a trustee.
(Milroy v Lord)

31
Q

What are the four conditions to make a valid gift?

A

(a) Mental capacity (Re Beaney);
(b) Intention, manifest by words or conduct;
(c) Certainty of subject matter and objects;
(d) Property must be transferred to the donee in the correct manner.

32
Q

Courts will not save an invalid gift by categorizing it as a successfully created trust.

A

Richards v Delbridge (following Milroy v Lord).

33
Q

‘Every effort’ test

A

Milroy v Lord; Re Rose; Mascall v Mascall

34
Q

What are the four conditions of Strong v Bird?

A

(a) Donor intends to make an immediate gift, but the gift is invalid due to failure to comply with the appropriate formalities for transfer;
(b) Intention must be to make an immediate gift (Re Freeland);
(c) Intention continues unchanged until donor’s death (Re Gonin);
(d) Donee is appointed the executor on the donor’s death.

35
Q

If the donee has under their control everything necessary to constitute their title completely without any further assistance from the donor, then the donee needs no assistance from equity and the gift is complete.

A

Mascall v Mascall

36
Q

There may sometimes be circumstances where it would be unconscionable for a donor to back out of a gift.

A

Pennington v Waine

37
Q

In which case were the three certainties originally stated?

A

Knight v Knight

38
Q

No trust is created when a settlor using precatory words.

A

Re Adams

39
Q

‘Equity looks to intent rather than form’ in application

A

Paul v Constance

40
Q

There is no indication of how much ‘bulk’ constitutes and therefore subject matter will be uncertain

A

Palmer

41
Q

Settlor must identify which chattels out of a wider collection of chattels constitute the trust property.

A

Re London Wine Company

42
Q

Settlor need not stipulate exactly which shares are held in trust as shares of the same class in the same company are indistinguishable from one another.

A

Hunter v Moss

43
Q

Money segregated from other monies through placement in a separate bank account.

A

Re Lewis

44
Q

Money not segregated from other monies, therefore subject matter uncertain.

A

Brookmount

45
Q

Subject matter of a trust is certain if a settlor gives a workable formula for calculating the amount.

A

Re Golay

46
Q

Rule against remoteness of vesting, relevant to contingent interests.

A

For pre-2010, held to be void if does not vest within 80 years; for post-2010, held to be void if does not vest within 125 years.

47
Q

Rule against inalienability, relevant to non-charitable purpose trusts.

A

Void from the outset if the trust capital is not freely alienable within the perpetuity period.

48
Q

Which statutory section deals with the transfer of an equitable interest?

A

s53(1)(c) of the LPA 1925

49
Q

Transferring an equitable interest by directing a trustee to hold property on trust for someone else.

A

Grey v IRC

50
Q

If transferring the legal and equitable interest, there is no possible ground for invoking s53(1)(c).

A

Vandervell v IRC

51
Q

Failure to correctly transfer an equitable interest under a bare trust.

A

Zeital v Kaye

Equity & Trusts (1 decks)

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