Trusts - Resulting/Constructive Trusts Flashcards
Vandervell v IRC
No trust declared of option
Where beneficial interest UNDISPOSED OF - RESULTING trust
Re Diplock
“charitable OR benevolent”
- not charitable
- no certainty of objects
- failed
RESULTING trust where FAILURE of trust
Re Cochrane
Remaining power of appointment with wife
INCOMPLETE DISPOSAL of beneficial interest - RESULTING trust
The Trusts of the Abbott Fund
Surplus
When trust is FULFILLED - RESULTING trust
Unusual.
Re Andrew’s Trust
Surplus following “education purpose” fulfilment
Were PURPOSE of the gift was expression of motive - NO resulting trust but absolute gift
(NB more usual to follow than Abbott Fund case)
West Sussex Constabulary’s Widows, Children and Benevolent Fund Trusts
Dissolution of unincorporated association
- surviving members had no claim
- identifiable donations as a RESULTING trust for donors
- proceeds of entertainmenets/collections BONA VACANTIA
Contrast with next case.
Re Bucks Constabulary Widows’ and Orphans Fund Friendly Society
Largely discredited West Sussex case in favour of contract
Surplus divided between members at date of dissolution in equal shares.
Davis v Richards & Wallington Industries Ltd
Obiter suggestion that practical necessity might dictate whether or not a contractual or a resulting trust solution was appropriate.
Hodgson v Marks
Elderly widow transferred house to lodger
No presumption implied that holding for grantor unless expressed in conveyance.
Re Vinogradoff
A voluntary transfer of PERSONALTY to a stranger still raises an initial presumption of a resulting trust.
Pettitt v Pettitt
Where certain relationships exist a voluntary transfer is presumed by way of a gift
(Husband and wife in the case)
(NB presumption of advancement to be abolished under s199 of Equality Act 2010 but not yet in force and not retrospective.)
Gascoigne v Gascoigne
Rebutting evidence based on an illegal purpose is inadmissible
(to protect property from creditors)
Tinsley v Milligan
If litigant can establish title without relying on own illegality then is admissible
(to claim housing benefit
BUT contributed purchasing money too)
Tribe v Tribe
Presumption of advancement can be rebutted by evidence of illegal purpose, if it has not been carried out.
Keech v Sandford
Trustee should have let the lease run out, than have it to himself even though not fraudulent.
Fiduciaries must not make unauthorised profits from knowledge held as trustee
Protheroe v Protheroe
Husband held legal title to leasehold interest. Could acquire freehold but would be reimbursed expenses and it would be held on trust as a leasehold interest for him and wife.
Re Macadam
Trustees are NOT entitled to keep fees as directors
Re Dover Coalfield Extension Ltd
Trustees were directors BEFORE they became trustees so did not acquire their company position because of the trusteeship.
Could retain fees.
Re Gee
A trustee who becomes a director in a company in which the trust has a shareholding, does not automatically become liable to the beneficiaries for the director’s feed.
ISsue is whether or not the trustee has ONLY become director by virtue of the trust’s shareholding.
Reading v AG
Defined the fiduciary relationship
- whenever entrusted and relied upon to deal with property for the benefit or purposes authorised
- entrusted to a job to be performed and relied on to procure the best terms available for D
(Asquith LJ)
Re Biss
Where no fiduciary relationship exists, there will be no liability
Boardman v Phipps
Knowledge is trust property.
If acquired via another route can use knowledge to own advantage
OR if obtain informed consent from beneficiaries and trustees (all to be safe).
Court did not decide how held:
Duty to account - personal claim where can keep shares but give value to beneficiaries
Constructive trust - actual trust held
AG for Hong Kong v Reid
A bribe received by a fiduciary and/or any property acquired with the bribe is held on constructive trust.
(bribe as public prosecutor - breach of fiduciary duty owed - constructive trust to crown)
