Question 1 (a) A settlement on a trust can be a described as a conditional gift made by the settlor to the trust’s beneficiaries. Explain in what way a trust can be argued to be such a conditional gift. Testators (or donors) may attach any condition that they choose to a gift. Depending upon the circumstances, a conditional gift may be subject to conditions either precedent or subsequent. A condition precedent is one that is to be performed before the gift takes effect. A condition subsequent is one to be performed after the gift has taken effect, and, if the condition is unfulfilled, will put an end to the gift. That is, there is a divesting of the gift. Whether a particular condition is precedent or subsequent is a matter of construction. …show more content…
-The legal ownership of property is transferred and equitable interests in the property are created. Property transferred to trustees is no longer legally owned by the settlor. In family trusts this can have significant implications for what the settlors (often “mum and dad” home-owners and investors) can do with the property in the future. A properly run trust may make dealing with property more administratively complicated. -Trusts give rise to complex legal obligations. Trustees have onerous and complicated duties that require them to act for the benefit of the beneficiaries of the trust. The precise content of these duties is the subject of on-going legal argument and debate and their scope is not always easy to define. Their breach can give rise to legal action. It is possible for a trust deed to vary or limit the trustee’s duties, but again the extent to which some limitations are effective is the subject of on-going legal debate. -There are costs to establishing trusts and many on-going associated costs. It is possible that some people transfer their property to trusts at considerable on-going cost for little financial or other
Superannuation funds operate as trusts funds with trustees being responsible for the prudential operation of their funds and in implementing and formulating strategy for investment .specific obligations and duties are coded in the Superannuation Industry (Supervision) also other obligations are the subject of general Australia trust law. Trustees are liable under law for breaches of obligations. Superannuation trustees ha...
A Quistclose trust arises when money is paid to a recipient for a specific purpose, if that purpose fails the money is held on trust for the payer. It mostly arises in insolvency cases where the proprietary rights have to be established. However, this type of trust has been thought to be inconsistent with the traditional trust principle. Many have suggested the Quistclose trust must be treated as any other fully fledged security device taking into account the protection it offers the payer on insolvency and should therefore be registrable. This essay critically analyses the concept of Quistclose trust, whether it differs from the resulting trusts.
The principles of constitution of trusts are derived from the case of Milroy v Lord (1862 where turner L.J. stated that the complete constitution of a trust requires the actual transfer of property from the person making the gift to the beneficiary, a transfer of the intended gift to the trustees to be held in trust for the beneficiaries or the self-declaration of a trustee. The principle in this case is that a gift can only be enforced in equity if it satisfies one of the three requirements. Where the trust does not meet any of the three requirements the trust is considered an imperfect on incompletely constitutes trust. If the donor fails to complete all the formalities required by common law, then equity will not assist the intended beneficiary and thus the gift will be imperfect. The equitable maxim applicable is that equity will not complete an imperfect gift.
The law of contract in many legal systems requires that parties should act in good faith. English law refuses to impose such a general doctrine of good faith in the field of contract law. However, despite not recognizing the principle, English contract law is still influenced by notions of good faith. As Lord Bingham affirmed, the law has developed numerous piecemeal solutions in response to problems of unfairness. This essay will seek to examine the current and future state of good faith in English contract law.
Given that it lies within the domain of equity, the case law indicates a great flexibility in its application, both in the substantive requirements of proof demanded by the courts and in the manner in which the courts will satisfy the equity. It is the first of these aspects of the doctrine that I will examine in this essay. I will look at the shift in the evidentiary requirements and what a representation (or an assurance of rights), a reliance (a change of position on the basis of that assurance) and a detriment (or unconscionable disadvantage) - the three pre-requisites for a successful claim - have come to mean with regard to case law and in particular the judgement of Judge Robert Walker in the Court of Appeal in Gillett v. Holt[1], in which the plaintiff had been given repeated assurances over many decades that he would inherit the defendant's estate, and remained in service to him at least p... ... middle of paper ... ... operty, 16th Ed, Butterworths K. Gray & S.F Gray - Land Law, 2nd Ed, Butterworths Professor Cedric D Bell - Land: The Law of Real Property, 3rd Ed, Old
It is a concealed arrangement made between a testator and the trustee and is made to come into force after death. A justification for ST is the ‘dehors the will’ theory which means the trusts arise outside of the will - a inter vivos trust. Its purpose is to benefit another individual that hasn’t been written in the formal will. The testator will leave property to the trustee under the will with the understanding that they will hold the property as a gift for which they will then later on be expected to pas...
Current English land law on the co-ownership of interests of land has developed quite a contentious history pertaining to the relationship between the acquisition of rights and the quantification of the shares. In terms of co-ownership, there are huge variances and legal consequences when legal ownership is in one person’s name compared to two. These differences can be seen in various landmark cases which have created precedent and developed refined principles such as Lloyds Bank plc v Rosset and the Stack v Dowden. For the courts, it has often been relatively complex to distinguish between constructive and resulting trusts and to decide on the procedure to be used for the quantification of equitable entitlement once the decision to impute has been established. The quantification of resulting trusts is carefully considered in both, Midland Bank v Cooke and Stack v Snowden. In many co-ownership cases dealing with the acquisition of rights and the quantification of shares, the outcomes aren’t always proportionate. Reasons can include the ambiguities in the identification and changes of common intention and contributions types. In speaking to this issue, Baroness Hale stated in Stack v Dowden that “each case will turn on its own facts” and furthermore elaborated on the conditions for a common intention construct arising. It is furthermore important to critically discuss the repercussions these cases have for the future of co-ownership law to reconcile existing sources of confusion.
It has been generally acknowledged that the doctrine of proprietary estoppel has much in common with common intention constructive trusts, i.e. those that concern the acquisition of an equitable interest in another person’s land. In effect, the general aim is the recognition of real property rights informally created. The similarity between the two doctrines become clear in a variety of cases where the court rely on either of the two doctrines. To show the distinction between the doctrines, this essay will analyse the principles, roots and rationale of both doctrines. With reference to the relevant case law it will be possible to highlight the subtle differences between the doctrines in the cases where there seems to be some overlap. Three key cases where this issue surfaced were the following: Lloyds Bank Plc v. Rosset (1991), Yaxley v. Gotts (1999) and Stack v. Dowden (2007). This essay will describe the relevant judgements in these cases in order to show the differences between the two doctrines.
Completely constituted trusts are segmented into executory and executed trusts. Executory trust is when a declaration or instrument requires the successive execution of further instruments while an executed trust is when the settlor has clearly and expressly stated what the interests of the beneficiaries are in the trust instrument. When a trust is not properly constituted, there will be no equitable proprietary interest for the beneficiaries. In such situations, the trust is enforceable under contract otherwise the beneficiaries are regarded as “volunteers”. A volunteer is a beneficiary who does not have valuable consideration for a promise or agreement for property to be transferred to him through trustees. Settlors must do everything within their power as necessary according to the nature of the property so that the settlement would be binding. There are three wa...
So under the Act solicitors can recommend a firm of accountants to a client but can not set up business together. The Courts and Legal Services Act 1990 extended the rights of conveyancing so that banks and building societies can now practice. This was beneficial to the consumer but had a major impact on
The Act allows negligence as the sole ground unlike common law which required the claimant to establish ‘fraud’ even if negligence existed. It is believed that the ‘d...
Members of the class of potential beneficiaries do not hold any beneficial interest until trustees exercise their discretion to appoint in the beneficiaries favour . The amount the beneficiaries receive is at the discretion of the trustees. Fixed trusts:in order to satisfy the certainty of objects requirement, a full list of the beneficiaries must be able to be created( IRC V Broadway Cottage Trust (1955), all the beneficiaries must be able to be identified.in this case all beneficiaries could be Identified so there is a fixed trust.
Been Gifted With a Few Additional Pounds This Winter? If only we could actually melt the pounds away like a snowman, life would be fantastic. Have you been gifted with a few additional pounds this winter?
The term 'corporate governance', in recent years has been used in a number or contexts, particularly in relation to that of boards of companies listed on the stock exchange. But many of the issues surrounding corporate governance have had implications for boards of privately owned companies too. Indeed, governance is the central role of all boards of directors, so an understanding of what it is and the issues involved can provide a useful insight for directors. This report will not only present the requirements of the 'Combined Code of Practice on Corporate Governance' but also take a look at the debate that has evolved around corporate governance within the UK over the past years. It will discuss some of the specific initiatives that have been undertaken to help clarify and codify some of the issues raised, look at some of the definitions that have been used.
Gift- giving is defined as something given voluntarily without payment in return, as to honor a person or an occasion or to provide assistance. Psychologists found that giving gifts is a surprisingly complex and important part of human interaction, helping to define relationships and strengthen bonds with family and friends. Indeed, they say it is often the giver, rather than the recipient, who reaps the biggest psychological gains from a gift. This was proven true as I spent time making and physically giving presents to my teacher and students to remember me by. The joy I got after is what made going the extra mile worth it.