Trusts - Resulting/Constructive Trusts

Question 0

Vandervell v IRC

Answer 0

No trust declared of option

Where beneficial interest UNDISPOSED OF - RESULTING trust

Question 1

Re Diplock

Answer 1

“charitable OR benevolent”

• not charitable
• no certainty of objects
• failed

RESULTING trust where FAILURE of trust

Question 2

Re Cochrane

Answer 2

Remaining power of appointment with wife

INCOMPLETE DISPOSAL of beneficial interest - RESULTING trust

Question 3

The Trusts of the Abbott Fund

Answer 3

Surplus

When trust is FULFILLED - RESULTING trust

Unusual.

Question 4

Re Andrew’s Trust

Answer 4

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)

Question 5

West Sussex Constabulary’s Widows, Children and Benevolent Fund Trusts

Answer 5

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.

Question 6

Re Bucks Constabulary Widows’ and Orphans Fund Friendly Society

Answer 6

Largely discredited West Sussex case in favour of contract

Surplus divided between members at date of dissolution in equal shares.

Question 7

Davis v Richards & Wallington Industries Ltd

Answer 7

Obiter suggestion that practical necessity might dictate whether or not a contractual or a resulting trust solution was appropriate.

Question 8

Hodgson v Marks

Answer 8

Elderly widow transferred house to lodger

No presumption implied that holding for grantor unless expressed in conveyance.

Question 9

Re Vinogradoff

Answer 9

A voluntary transfer of PERSONALTY to a stranger still raises an initial presumption of a resulting trust.

Question 10

Pettitt v Pettitt

Answer 10

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.)

Question 11

Gascoigne v Gascoigne

Answer 11

Rebutting evidence based on an illegal purpose is inadmissible

(to protect property from creditors)

Question 12

Tinsley v Milligan

Answer 12

If litigant can establish title without relying on own illegality then is admissible

(to claim housing benefit
BUT contributed purchasing money too)

Question 13

Tribe v Tribe

Answer 13

Presumption of advancement can be rebutted by evidence of illegal purpose, if it has not been carried out.

Question 14

Keech v Sandford

Answer 14

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

Question 15

Protheroe v Protheroe

Answer 15

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.

Question 16

Re Macadam

Answer 16

Trustees are NOT entitled to keep fees as directors

Question 17

Re Dover Coalfield Extension Ltd

Answer 17

Trustees were directors BEFORE they became trustees so did not acquire their company position because of the trusteeship.

Could retain fees.

Question 18

Re Gee

Answer 18

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.

Question 19

Reading v AG

Answer 19

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)

Question 20

Re Biss

Answer 20

Where no fiduciary relationship exists, there will be no liability

Question 21

Boardman v Phipps

Answer 21

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

Question 22

AG for Hong Kong v Reid

Answer 22

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)