Last bits Flashcards
When does the maxim ‘equity will not assist a volunteer’ apply to creation of valid trusts?
Incomplete declaration of trust where there has been no transfer.
Donee has not paid consideration.
Equity will normally not assist.
When will equity step in to complete an incomplete transfer of a gift/trust?
When donee has relied, to their detriment, on the assurance of the gift - proprietary estoppel
OR if it would be unconscionable for the donor to change their mind.
What kind of trusts require that property is transferred for it to be effective?
inter vivos trust - no need for testamentory trusts because they will vest after death
What is a limited interest in a trust?
When the beneficiary’s interest does not give right to capital (so could be income only trust) - most common is interest limited re time (eg life)
What kind of trust does rule in Saunders v Vautier apply to?
Both fixed and discretionary trusts.
BUT may be difficult to get all Bs of discretionary trust to agree. So subject to practicality.
When will money paid towards house give rise to a resulting trust?
When it goes towards purchase price.
cf - money paid toward tax or improvements in the property. will NOT give rise to resulting trust in the property.
What can co-owners (w legal title in both names) do to conclusively hold property in proportionate shares?
- Tenancy in common (in equity) with an express declaration of trust (conclusive regardless of financial contribution)
- Transfer may state they hold in equity as joint tenants, ie equal shares
How is a constructive trust established in single owned land?
- Common intention - express (actual discussions) OR implied (eg contribution to purchase price, substantial renovation)
- Detrimental reliance - Significantly altered position
What are the 12 charitable purposes?
- Education
- Religion
- Amateur sports
- Armed forces
- Human rights
- Health
- Animal welfare
- Support for the disadvantaged (youth, disabled, etc)
- Poverty
- Citizenship/community
- Arts/culture/heritage/science
- Environmental protection
What is the exception to a charitable trust being for the general public?
Exception is for relief of poverty -
eg. trust for the settlor’s ‘poor relations’ will succeed.
NOTE that cannot name the Bs in the will.
How does the remoteness of vesting rule apply to charitable trusts?
The initial gift to a charity must vest within the perpetuity period - that is within 125 years.
When is general charitable intent difficult to establish?
- When testator has taken care to identify a specific named charity, except for if the charity named in the will never existed!
- When testator hs established detailed plans for waht should happen.
How are beneficiaries under Denley Trusts limited?
They cannot use the rule in Saunders v Vautier because no identifiable individuals have full beneficial entitlement.
How does the inalienability rule apply to honorary trusts?
- Need to either specify that it will end in 21 years or if not too much funding, then court will assume it end in 21 years.
BUT if too much money, then needs to specify otherwise it fails.
When do beneficiaries have the power to appoint trustees?
- No person nominated in trust instrument
- Bs have mental and legal capacity
- Bs are absolutely entitled
- Bs act unanimously
