Trust 5 Formalities - Constitution

Question 1

What is constitution?

Answer 1

Transfer of legal title

Question 2

How is constitution achieved for cheques?

Answer 2

• Cheques: endorsing cheque by signing on back

Question 3

How is constitution achieved for registered land

Answer 3

• Registered Land: valid deed, registration

Question 4

How is constitution achieved for shares,

Answer 4

• Shares: sign stock transfer form & send to company; title passes when named entered in register

Question 5

How is constitution achieved for choses in action (debts and money in a bank account),

Answer 5

• Choses in Action: notice in writing to debtor/bank

Question 6

How is constitution achieved for chattels?

Answer 6

• Chattels: by deed or gift; deliver with evidence of intention

Question 7

What is effect of constitution?

Answer 7

Disposition is irrevocable - settlor ceases to have any legal or beneficial interest in property

Question 8

When will constitution fail for trust property? And for gifts?

Answer 8

Trust: if not vested in trustees
Gift: if legal title hasn’t passed