Trust 5 - DMC & Land

Question 1

What is a DMC?

Answer 1

Gift made in contemplation of death
Gift:
- made in contemplation of imminent death
- conditional on death
- Delivery of property (not necessarily transfer of legal title, just part with control - can be constructive e.g. keys to a locked box containing deeds)

Note: unlike fortuitous vesting DMC does not require the gift to be immediate, just IF dies.

Question 2

What is the case for DMC

Answer 2

• keys to box containing deeds to house = enough

NOTE (keys to house would not be enough)

Question 3

To make a trust of land, does the declaration and writing have to be contemporaneous?

Answer 3

No, just need evidenced in writing.

Question 4

What happens if there is no evidence in writing of a trust of land

Answer 4

The trust is unenforceable but not void. This means the beneficiary can’t enforce their rights unless and until the trust is evidenced in writing.

Question 5

If a trust in land is later recognised in writing, can the beneficiary sue in respect of the time between declaration and the written evidence of that declaration?

Answer 5

Yes. The declaration acts retroactively.

Question 6

Does a trust in land always need to be evidenced in writing?

Answer 6

No, only express trusts need do so. Resulting and constructive trusts do not need to be evidenced in writing

Question 7

Does an imperfect gift or trust create a valid trust

Answer 7

No,
- an imperfect gift does not make a trust (I.e. not taking a step required to transfer ownership) and
- if title doesn’t move to the trustees then the trust is imperfect and void.