78 terms

W301 Rev 3

OU law W301 revision set 3
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
Mental capacity,
transferred in correct manner
Mental capacity for gift
Re Beaney
Must understand nature and consequences of transaction
Valid and effective voluntary settlement
Milroy v. Lord
Transferor must have done everything necessary to transfer the property
Transfer of equitable interest must be in writing if separate from legal interest
LPA 1925 s.53(1)( c)
Oral disposition of equitable interest is void
Grey v. IRC
Gift to witness or their spouse is void
Wills Act 1837 s.15
Formality of will
Wills Act 1837 s.9
In writing, signed and witnessed by 2 witnesses
Where donor's intention continues till death and legal title transfers to donee, gift is deemed complete
Strong v. Bird
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
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
Identity of subject
Re London Wine Company (Shipments) Ltd
Must identify which chattels out of a larger collection are subject to the trust
"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
Precatory words do not impose a binding obligation
Re Adams and Kensington Vestry
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
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
Declaration of trust over land
LPA 1925 s.53(1)( b)
Must be evidenced in writing and signed by settlor
Equity will not allow statute to be used as an instrument of fraud
Rochfoucauld v. Boustead
Declaration of subtrust
If trustee of subtrust retains active duties to perform, does not dispose of equitable interest so no formality required
Incomplete trust may be completed where unconsciounable for settlor to change mind
T Choithram v. Pagarani
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
Denley Trusts must have beneficiaries with equitable interests
Re Lipinski's Will Trusts
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
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]
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
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
Rebutting advancement based on illegality
Tribe v. Tribe
Cannot be rebutted on basis of illegal purpose unless purpose not carried out
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
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)
Trustees have power to dispose of land to beneficiaries sui juris and end trust
TLATA 1996 s.6(2)
Trustees can buy legal estate in land (not equitable interest)
TLATA 1996 s.6(3)
Trustees can partition land between beneficiaries with their permission
TLATA 1996 s.7
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
Trustees must consult with beneficiaries before selling unless trust made by will before 1996 Act
TLATA 1996 s.11
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
entitled to interest in posession,
purpose includes making land available to occupy and
trustees hold land is so available
TLATA 1996 s.12
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
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
Legal estate must be held as joint tenants. Implied trust of land
LPA 1925 s.1(6), LPA 1925 s.36(1)
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}
Declaration of how co-owners should hold is conclusive
Goodman v. Gallant
Express declaration
Situations where equity presumes tenancy in common
Multiple lenders,
Unequal contributions to purchase price
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
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
Act to detriment test
How would non-legal owner have acted if promise had been retracted
Wayling v. Jones
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
Proprietary estoppel remedy
Fulfill expectations and no more than minimum equity to do justice,
Baker v. Baker and Baker