Trusts

Question 1

Express trusts

Answer 1

• ‘clear declaration of trust’ [Paul v Constance]
• s.53 (1)(b) = manifested and signed in writing
• express trusts are conclusive = Goodman v Gallant

Question 2

Resulting trusts

Answer 2

• beneficial interest in proportion to the purchase money
• useful in commercial relationships = Laskar v Laskar
• useful in the 1970s = Pettit v Pettit = arguably unfair now as it is a different social era
• social norms changing was recognised in Jones v kernott, so contructive trusts are now used

Question 3

Constructive trusts

Answer 3

• CT arises whenever equity thinks it should = Paragon Finance plc v DB Thakera & co
• a CT must arise in good conscience = Beatty v Guaggenheim Exploration Co
  Common intention contructive trust [CICT]
• judges look forevidence of intention = Gissing v Gissing
• CICT from implied agreements = Stack v Dowden
• S v D is more suitable than resulting trusts in Lloyds Bank v Rosset as it takes into account domestic expenses, not just contributions to the purchase price

Question 4

Stack v Dowden

Answer 4

• H + W had compltely separate finances
• Lady Hale sets out the tests for working out their shares …
  1. equity follows the law, so beneficial title teh same as legal
  2. then you look at the circumstances to support this = does it rebut the presumption
  3. quantify the shares
• their different contributions to the purchase price was not enough to rebut the presumption, but the context does as they kept strictly separate finances
  After S v D …
• Jones v Jernott = crystallising shares
• Marr v Collie = if you don’t know which trust to apply, go for CT

Question 5

Trusts of land

Answer 5

Trust of Land ad Appointment of Trustees Act 1996 [TLATA]
- where there is land and a trust this Act applies [s.1]
- a trust includes any decalration of trust [s.2]

Question 6

Trustee’s powers TLATA

Answer 6

trustee’s powers = s.6
- power to partition = s.7
- power to delegate = s.9(1)
- powers must be exercised unanimously = s.14

Question 7

Beneficiaries’ rights TLATA

Answer 7

• right to be consulted = s.11
• right to occupy = s.12 [subject to s.13 factors and only if the land is available]
• right to remove or appoint trusttes unaminously = s.19, s.20, s.21
• right ot apply for a court order = s.14