Trusts Of Land Flashcards
TLATA 1996
Trusts of Land and Appointment of Trustees Act 1996
Trusts of land
S2(1) no new settlements could be created after the commencement of TLATA1996
S3 doctrine of conversion no longer exists
S4 any existing and future trusts imply the power for trustees to postpone sale
S5 all implied trusts were converted to trusts of land
Powers of the trustees of land
S6 trustees have the same powers in relation to property as an absolute owner
S8 these powers may be expressly excluded or subject to the consent of a third party
Delegation of powers of trustees
S9 allows the trustees to delegate any of their powers by power of attorney to the beneficiaries who are of full age and beneficially entitled to an interest in possession of the land
Powers of the court in relation to sale
S14 allows any person interested in the trust to apply to the court to obtain an order to sell
S15 sets out guidelines
Intention of the settlor
The purpose of the trust
The welfare of any children in occupation
Interest of any secured creditor
Bank of Ireland Home Mortgages v Bell [2001]
The husband stopped paying mortgage repayments and had divorced his wife. The son was not yet 18 but the mortgage was unpaid for 8 years the court stated that the interests of the bank were more significant than the son
Edwards v Lloyds TSB Bank plc
Creditors were involved but the order for the sale of the property was suspended for 5 years until the younger child of the co-owners reached the age of the majority
Sale at the request of a trustee in bankruptcy
S335A Insolvency Act 1986 provides where a s14 application is brought by a trustee in bankruptcy it must be made in the county court
County court sale by trustee in bankruptcy
The court will make an order based on
The interests of the bankrupts creditors
Any spouse or child in the home
All other circumstances
Prevention of a sale by a beneficiary
- Appointment of a second trustee
2.The rule in Saunders v Vautier [1848] - Consultation under s11
Saunders v Vautier [1848]
If the beneficiaries are of full age and sound mind they may act in unison to bring the trust to an end. Therefore if the beneficiaries wish to prevent sale they may discharge the trustees and appoint new ones
S11(1) TLATA 1996
The trustees of a trust of land are under an obligation to consult with the beneficiaries who are of full age and beneficially entitled to a interest in possession of the land
Overreaching TLATA
Sale must be by the persons entitled to sell with at least 2 trustees
The beneficial interest must be capable of being overreached
There must be compliance with respect to payment of any capital money
