TERM 2: Trusts Flashcards
What is the starting point for resolving disputes about the family home when it is in sole name?
The presumption is that the sole owner is also the sole beneficial owner
Referenced in Gissing v Gissing [1971]
What happens if there is an express declaration of beneficial interests?
It is conclusive
Referenced in Pettitt v Pettitt [1970]
In the absence of express agreement, how can a party displace the presumption of sole beneficial ownership?
Through:
* An express contract in favor of the other party
* A resulting trust based on contribution
* A constructive trust based on common intention
Referenced in Lloyds Bank v Rosset [1990]
What is the presumption regarding equitable interests when property is in joint names but there is no express declaration of trust?
The presumption is that the owners have equal shares in equity
Referenced in Stack v Dowden [2007]
What are the two main types of disputes about ownership of the family home?
- Property purchased in one name with claims of contribution
- Property purchased in joint names with claims for a greater share
Examples include Lloyds Bank v Rosset [1990] and Stack v Dowden [2007]
What is a resulting trust?
A trust that arises when contributions to the purchase of property are made, reflecting direct financial contributions
Governed by principles that often ignore contributions made after purchase
What is a constructive trust?
A trust arising from common intention and detriment, where parties have a presumed common intention or actual agreement
Referenced in Lloyds Bank v Rosset and Stack v Dowden
What did the Law Commission criticize about the law governing breakdown of relationships?
It was described as complex, uncertain, and often unjust
Referenced in the Law Commission report published in July 2007
True or False: The courts have statutory powers to adjust property rights of unmarried couples.
False
Courts can adjust rights for married couples but not for unmarried couples
What are the factors considered in determining common intention for a constructive trust?
Factors include:
* Reasons for acquiring the property in joint names
* Nature of the parties’ relationship
* Financial arrangements
As referenced in Stack v Dowden
Fill in the blank: The law governing trusts of the family home is described as having a distinctive character due to its _______.
Domestic context
This context significantly influences how disputes are resolved
What did Lord Neuberger compare the relationship between property law and family law to?
Oil-and-vinegar quality
Referenced in the keynote speech at the ‘At a Glance’ conference 2017
What is the implication of the Equality Act 2010 regarding presumptions in trusts?
Removal of the Presumption of Advancement
This was intended to address gender biases in property rights
What is a common intention constructive trust based on?
It can be based on actual agreement or inferred common intention
The latter involves examining the entire relationship as per Baroness Hale in Stack v Dowden
What is the significance of the ‘balance sheet approach’ in family home disputes?
It reflects the courts’ discretion in determining equitable shares
This approach allows for consideration of various factors in each individual case
What factors might the court consider under ‘exceptional circumstances’?
Factors include:
* History of the relationship
* Financial arrangements
* Contributions made
Referenced in Stack v Dowden and Jones v Kernott
