Trusts

  • Created by: jesskeayy
  • Created on: 04-05-19 16:44
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  • Trusts
    • When a person has rights which he is bound to, to exercise upon behalf of another, he is said to have rights in trust for that purpose and is called a trustee
    • Settlor transfers legal title to property to the trustee, who holds legal title for the beneficiary. The beneficiary has equitable interest in the trust property
    • Beneficiary can transfer their beneficial interest to someone else, even when the settlor has tried to limit their power to do this
      • Brandon v Robinson
    • Saunders v Vautier- where they have reached the age of majority, beneficiary can require transfer of the trust(bring the trust to an end)
    • Trustee can transfer legal title to a third party. Beneficial interest will bind third parties, unless its 'equity's darling'
    • Trustee obligations to the beneficiary: 1. trust obligations. 2. fiduciary obligations. 3. obligations of care and skill
    • Trusts can: 1. split nominal and real ownership 2. split control and ownership 3.split property different ways: across time(successive interests), across space (concurrent), contingent interests
    • Imposed by law
      • Constructive trusts, resulting trusts
    • Express trusts
      • Charitable trusts public), private trusts (fixed interest trusts, discretionary trusts)
    • Westdeutsche (1996) 1. equity acts on conscience of legal owner, 2. legal owner must be aware of factors affecting conscience, 3. must be identifiable trust property, 4. B has proprietary interest in trust property
    • Three certainties 1. certainty of intention 2. certainty of subject matter 3. certainty of objects
      • 1. certainty of intention: intention to create a trust
        • Jones v Lock (1865) equity will not perfect and imperfect gift
        • 'Trust' is neither necessary nor sufficient
        • Inferred from circumstances: Paul v Constance (1977)
        • No formalities apart from: S.53(1)(b) LPA 1924 and S.9 Wills Act 1837
      • 2.certainty of subject matter: described with sufficient clarity
        • Must be identifiable: London Wine Co (1986) Hunter v Moss (1994)
      • 3. certainty of objects: Morice v Bishop of Drham (1805)
    • Astor's Settlement Trusts (1952)
      • Preservation of the freedom, independence and integrity of newspapers
        • Promotion of independence, freedom and integrity of the press in all its activities
          • Protection of newspapers from being absorbed or controlled by combines
    • Supervision and performance: McPhail v Doulton (1970)
      • The court will execute the trust in the manner best calculated to give effect to the settlors intentions. It may appoint new trustees if necessary

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