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Equity and Trusts > Resulting Trusts > Flashcards

Resulting Trusts Flashcards

1
Q

What does the beneficiary principle state?

A

Every trust, except charitable trusts, must have a beneficiary or beneficiaries to enforce it

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2
Q

What purpose do resulting trusts serve?

A

Returning property to its original or rightful owner

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3
Q

What are the two types of resulting trusts?

A
  1. When an estate is purchased in the name of one person, but the money or consideration is given by another
  2. Where a trust is declared only as to part, and nothing is said to the rest, what remains undisposed of results to their heir at law
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4
Q

Where were the two types of resulting trusts confirmed?

A

Westdeutsche Landesbank Girozentrale v Islington London BC [1996]

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5
Q

What case were these two types of resulting trusts established?

A

Lloyds v Spillett [1740]

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6
Q

What happens if the trust fails?

A

The trust property returns to the original settlor

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7
Q

What did Re Boyes [1884] confirm would cause a trust to fail?

A

Failure to name a beneficiary

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8
Q

What did Re Cochrane [1955] confirm would cause a trust to fail?

A

Unforeseen error in the trust

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9
Q

What did Re Gillingham Bus Disaster Fund [1958] confirm would cause a trust to fail?

A

Invalid as a charity

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10
Q

What did Air Jamaica v Joy Charlton [1999] confirm would cause a trust to fail?

A

Surplus money in a pension fund

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11
Q

What are presumed resulting trusts?

A

Only presumptions, the court will find a resulting trust, unless there is evidence to the contrary

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12
Q

What is voluntary transfer to another?

A

The court presumes that if A transfers property to B and B provides no consideration in return, that B will hold on resulting trust for A

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13
Q

What happened in the case of Fowkes v Pascoe [1874-5]?

A

The presumption can be displaced by the evidence

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14
Q

What was said in the case of Press v Petrodel Resources [2013]?

A

There was no evidence to displace the presumption

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15
Q

What is financial contribution to the purchase price?

A

The presumption that the person with the legal title holds on resulting trust for those who have contributed to the purchase price. Their equitable interests are in proportion to the size of their respective financial contributions

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16
Q

What was held in the case of Dyer v Dyer?

A

The person who has the legal title and beneficial title is the one who puts down the purchase money

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17
Q

What was said in the case of Tinsley v Milligan?

A

This presumption can be displaced by another presumption

18
Q

What is the presumption of advancement?

A

It is presumed that a man would want to provide for his wife and children. So if he transfers property to them and receives no consideration in return it is not a resulting trust it is a gift.

19
Q

What was said in the case of Re Eykyn’s Trust [1877]?

A

Where a husband transfers money or other property into the name of his wife only then the presumption is that it is a gift

20
Q

What was established in the case of Bennet v Bennet [1879]?

A

A person in loco parentis means a person taking upon himself the duty of a father of a child to make a provision for that child. There is no obligation in equity for a mother to provide for her child.

21
Q

How can a presumption of advancement be rebutted?

A

By the evidence

22
Q

What two cases condemned the presumption of advancement?

A

Pettit v Pettit

Stack v Dowden

23
Q

What did Pettit v Pettit say regarding presumption of advancement?

A

They belong in a different social era and should not be used for family cases

24
Q

What did Stack v Dowden say regarding presumption of advancement?

A

Who paid for what is more important as social and economic conditions have changed

25
Q

What was said in Laskar v Laskar regarding presumption of advancement?

A

Resulting trust are still used for business, rather than family dealings

26
Q

What effect did the Equality Act 2010 have on the presumption of advancement?

A

Abolished it in the unimplemented section 199

27
Q

What is illegality regarding resulting trusts?

A

The courts used not to admit evidence of an illegal purpose, meaning that the presumptions would have been implied. However they do now admit such evidence if it is relevant

28
Q

What is a quistclose resulting trust?

A

A loan for a specific purpose can become a trust. A borrower holding the loan on resulting trust for the lender.

29
Q

What is the case of Barclays Bank v Quistclose [1970]?

A

The express trust fails and the trust property returns on resulting trust to the original owner

30
Q

What was said regarding quistclose resulting trusts in Twinsectra v Yardley?

A

A trust cannot be for a purpose, it must have a beneficiary

31
Q

What are Trusts for Unincorporated Associations?

A

Many clubs and societies have no legal status. They’re not incorporated like a company and have no legal personality. Therefore they do not exist in law.

32
Q

What was confirmed in Morice v Bishop of Durham?

A

It is not possible for a trust to have a purpose unless it is a charity. A trust must have beneficiaries to enforce it.

33
Q

What are the two main solutions for unincorporated associations cannot legally exist?

A
  1. The unincorporated association is a trust for the members
  2. The unincorporated association is a contract between the members
34
Q

What was said in Re Drummond [1914]?

A

When society breaks down the trust property returns on resulting trust to members

35
Q

What was in Leahy v Attorney-General for New South Wales [1959]?

A

There was problems with such an association being a trust. It breaks the certainty of objects rule and the perpetuity rule. Therefore an unincorporated association can best be interpreted as a special kind of joint tenancy held together by the contract between the members.

36
Q

What was said in Neville Estates v Madden [1962]?

A

When the association is dissolved the contract determines who gets the property of the association, not resulting trust.

37
Q

What is a purpose trust?

A

Generally trusts to achieve a purpose are not allowed. However exceptions are allowed.

38
Q

What did Re Astor [1952] state would be held as a purpose trust?

A

Maintenance of a grave

39
Q

What did Re Hooper [1932] state would be held as a purpose trust?

A

Maintenance of a pet animal

40
Q

What did Re Dean (1889) state would be held as a purpose trust?

A

Promotion of fox hunting

41
Q

What did Re Thompson [1934] state would be held as a purpose trust?

A

Commemorating the dead

42
Q

What did Bourne v Keane [1919] state would be held as a purpose trust?

A

Saying of masses for the soul of the deceased, this is now charitable if it is said in public

Equity and Trusts (4 decks)

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