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OU law W301 revision set 3

Case:
Gift is complete once donor has put the thing given out of his power

Standing v. Bowring

3 causes of invalid gift

Intention to do something other than gift,
Inability through mental disability to form intention,
Failure to use correct method of transferring

Requirements for valid gift

Donor:
Mental capacity,
intention,
transferred in correct manner

Case:
Mental capacity for gift

Re Beaney
Must understand nature and consequences of transaction

Case:
Valid and effective voluntary settlement

Milroy v. Lord
Transferor must have done everything necessary to transfer the property

Statute:
Transfer of equitable interest must be in writing if separate from legal interest

LPA 1925 s.53(1)( c)

Case:
Oral disposition of equitable interest is void

Grey v. IRC

Statute:
Gift to witness or their spouse is void

Wills Act 1837 s.15

Statute:
Formality of will

Wills Act 1837 s.9
In writing, signed and witnessed by 2 witnesses

Case:
Where donor's intention continues till death and legal title transfers to donee, gift is deemed complete

Strong v. Bird

Case:
Donatio Mortis Causa

Cain v. Moon
Gift in contemplation of death, delivered to the donee, subject to death is deemed valid

Re Rose

Donor done everything in power to transfer, but awaits action of third party, gift held complete

3 methods of creating trust

Settlor transfers property to trusteee to hold for beneficiary,
Settlor declares themselves trustee for beneficiary,
Testator creates trust in will

Three certainties for trust creation

Certainty of intention
Certainty of subject matter
Certainty of objects

Case:
Courts will not impose trust to remedy, not required intention to create

Milroy v. Lord

Quistclose trust

Baclays Bank Ltd v. Quistclose Investments Ltd

Certainty of intention exists where money lent for specific purpose. If purpose fails, does not become part of general assets but held on trust for lender

Certainty of subject matter requirements

Clearly able to identify trust property,
Certainty of beneficial interests

Case:
Identity of subject

Re London Wine Company (Shipments) Ltd
Must identify which chattels out of a larger collection are subject to the trust

Case:
"Receive a reasonable income" is sufficiently certain as is an objective test

Re Golay

Certainty of fixed trust test

Complete list test
IRC v. Broadway Cottages

Certainty of discretionary trust test

Re Allen -
Valid if possible to say of one or more persons that they undoubtably qualify

Certainty of gift precedent test

Given postulant test

Case:
Precatory words do not impose a binding obligation

Re Adams and Kensington Vestry

Case:
Friend means long standing relationship of a social kind

Re Barlow's Will Trusts

Beneficiary principle

Trust must be for ascertainable beneficiaries

Rules against perpetuity

inalienability,
excessive accumulation of trust income,
remoteness of vesting

Rule against remoteness of vesting

Where interests are contingent and may never vest

Rule against perpetuity

Will vesting occur within prepetuity period:
- <80 years,
- life in being plus 21

Formality for declaration of trust over personalty

No formality required

Formality:
Declaration of trust over land

LPA 1925 s.53(1)( b)
Must be evidenced in writing and signed by settlor

Case:
Equity will not allow statute to be used as an instrument of fraud

Rochfoucauld v. Boustead

Formality:
Declaration of subtrust

If trustee of subtrust retains active duties to perform, does not dispose of equitable interest so no formality required

Case:
Incomplete trust may be completed where unconsciounable for settlor to change mind

T Choithram v. Pagarani

Case:
Certainty of subject fails if money specified is not segregated from other funds

MacJordan Construction Ltd v. Brookmount Erostin Ltd

Valid exceptions:
Non charitable purpose trusts

Trusts for maintenance of animals or tombs must be limited to 21 years or as long as law permits

Denley Trusts

NCP trust where purpose directly or indirectly benefits individuals. Benefit must be sufficiently tangible to give standing to bring an action

Case:
Denley Trusts must have beneficiaries with equitable interests

Re Lipinski's Will Trusts

Definition:
Non charitable unicorporated associations

2 or more members pursuing common purpose with mutual rights and duties arising from a contract with rules

3 methods of gifting a club

Neville Estates Ltd v. Madden
1- Gift to members at time of gift as joint tenants,
2- Gift to existing members subject to contractual rights and liabilities,
3- trust for purposes of the association

Case:
Gift to club fails if members do not have power to spend funds in any way they wish

Re Grant's Will Trusts

Limit of perpetuity / accumulation

80 years

Result of failed trust, subscriptions by members

No resulting trust, payments made under contract
Re West Sussex Constabulary's Benevolent Fund

Result of failed trust, donations and legacies

Failed trust, donations and legacies
Re West Sussex Constabulary's Benevolent Fund

What happens to ownerless property

Goes to Crown as bona vacantia

Dissolution of unincorporated association

Funds dispersed according to rules. If no rule, dispersed equally among members at time of dissolution
Re Bucks Constabulary Fund Friendly Society [No 2]

Case
Resulting trust arises regardless of settlor's intention

Re Vandervell's Trusts (No. 2)

Purchase money - resulting trust presumption

LPA 1925 s.60(3)
Transfer of land - no presumption,
Transfer of personalty - presumption of resulting trust

Case:
Presumption of advancement between husband and wife

Pettit v. Pettit
Weak presumption, easy to rebutt

Voluntary transfer illegality

Actions will not succeed where claimants have to produce evidence of an illegal purpose to prove their claim
Tinsley v. Milligan

Case:
Rebutting advancement based on illegality

Tribe v. Tribe
Cannot be rebutted on basis of illegal purpose unless purpose not carried out

Statute:
Trusts involving land created after 1 Jan 97

Trusts of Land and Appointment of Trustees Act 1996 s.2
Can only be in form of trust of land

Statute:
Trustees have power of absolute owner

TLATA 1996 s.6

How many trustees can own legal estate in land

Maximum 4 trustees of land can own legal estate
TLATA 1996 s.34(2)

Statute:
Trustees have power to dispose of land to beneficiaries sui juris and end trust

TLATA 1996 s.6(2)

Statute:
Trustees can buy legal estate in land (not equitable interest)

TLATA 1996 s.6(3)

Statute:
Trustees can partition land between beneficiaries with their permission

TLATA 1996 s.7

Statute:
Trustees can delegate powers to an attorney of full age and entitled to an interest in posession under trust

TLATA 1996 s.9
Must be of full age and entitled to an interest in posession under trust

Statute:
Trustees must consult with beneficiaries before selling unless trust made by will before 1996 Act

TLATA 1996 s.11

Statute:
Settlor restrictions on trustees powers

Settlors can place restrictions of trustees powers if trust is an express private trust
TLATA 1996 s

Beneficiary right to occupy trust land

If:
entitled to interest in posession,
purpose includes making land available to occupy and
trustees hold land is so available
TLATA 1996 s.12

Statute:
Trustees and beneficiaries can apply to court to resolve an issue

TLATA 1996 s.14

Overreaching on purchase of trust land

Purchaser takes free of trust if proceeds paid to two trustees or to a sole personal representative
LPA 1925 s.27

Case:
Purchaser of registered title takes free if pays two trustees

City of London Building Society v. Flegg

Four methods of ending trust for land

1. Sale,
2. Saunders Vautier,
3. Transfer to beneficiaries under TLATA 1996 s6,
4. Partition under TLATA 1996 s.7

Statute:
Legal estate must be held as joint tenants. Implied trust of land

LPA 1925 s.1(6), LPA 1925 s.36(1)

Case:
Equitable estate can be held as joint tenants or tenants in common

Bull v. Bull

Four unities of co-ownership

Unity of interest (same interest in land),
Unity of title (same document),
Unity of time (vest at same time),
Unity of possession (each entitled to possession of whole); {Only 1. needed for tenants in common}

Case:
Declaration of how co-owners should hold is conclusive

Goodman v. Gallant
Express declaration

Situations where equity presumes tenancy in common

Partnership,
Multiple lenders,
Unequal contributions to purchase price

Statute:
Severance by notice

LPA 1925 s.36(2)
Must be :
given in writing,
show correct intention,
correctly served

Serving notice of severance

Leaving notice at last known abode or place of business
LPA 1925 s.196(3),
By registered post if not returned,
LPA 1925 s.196(4)

Three methods of severing joint tenancy

1. Act of one joint tenant acting on their share,
2. Mutual agreement,
3. Course of dealing by joint tenants show treated as tenancy in common
Williams v. Hensman

Implied trust of co-ownership
Lloyds Bank v. Rosset

Must have made contribution to purchase price. Indirect contributions not sufficient

Implied trust of co-ownership
Once common intention established court can include indirect contributions in deciding share

Midland Bank v. Cooke

Co-ownership:
2 situations where constructive trust

1. Agreement to share equitable interest and non-legal owner has altered their position.
2. Inferred common intention and direct contribution to purchase
Lloyds Bank plc v. Rosset

Co-ownership:
Act to detriment test

How would non-legal owner have acted if promise had been retracted
Wayling v. Jones

Co-ownership:
Proprietary estoppel

Non-legal owner has belief will acquire a share in property and relying on the belief has acted to their detriment. Requires an EXPECTATION
Taylors Fashions La v. Liverpool Vicoria Trustees Co. Ltd

Co-ownership:
Proprietary estoppel remedy

Fulfill expectations and no more than minimum equity to do justice,
Baker v. Baker and Baker

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