Equity and Trust in UK Essay

Equity and Trust in UK Essay

Length: 1677 words (4.8 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Consider the validity and effect of the following two clauses in the will of Dan: a) ‘I leave my cottage, at 42 Drumsesk Road, to my friend Gurpreet in full confidence that he will dispose of it in accordance with the instructions given to him during my lifetime’. Just before Dan signed the will, he told Gurpreet that he had left a ‘sum of money’ in the will to Gurpreet which he wanted him to hold for the benefit of Jenny. Gurpreet witnessed the will. Jenny died two days before Dan leaving two children. b) ‘I leave my residuary estate to my brothers Ken and Sam jointly’. A few days before the execution of the will Dan gave Ken a sealed envelope, saying ‘these are some instructions I want you and Sam to carry out when I die’. Ken replied ‘you know you can rely on me – if it’s fine with Sam it’s fine with me’. A year later Sam and Dan were killed in a car accident. The sealed envelope says that Dan wanted his residuary estate to pass to his youngest son Joseph. Advise the executors of Dan’s will.

Secret trust evolved as a response act to the Wills Act 1837 and was originally created to prevent fraud. As the House of Lords held that equity will not allow a statute to be used as an instrument of fraud by the secret trustee .

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...


... middle of paper ...


...y to the real beneficiary. Therefore implying that regardless of Sam’s passing away, as Ken had obtained consent on her behalf, before the testator died, the trust will still proceed, and Joseph will obtain Dan’s residuary estate.

After establishing that this trust is a FST, one must again asses as to whether this trust fulfils all the requirements needed to become binding. Intention was established when Dan gave Ken the sealed envelope with the terms of the trust. Communication was proven when Ken and Dan had an oral conversation in regards to the terms of the trust, Communication was also proven as in Re Keen stated that envelope and letter stating the terms was seen as sufficient amount of communication. Finally acceptance was proven when Ken stated “you know you can rely on me”. Concluding that the FST is binding, and Joseph will indeed receive the trust.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Role Of Equity Law Over Common Law Essay

- Law is usually, a structure of rules that are enforced and backed by the cohesive power of the state to govern and control the social order. Fundamentally, the law is formed through legislation, binding of precedents, decree and regulations. These sets of rules are further segregated into criminal law, civil law, common law & equity and Religious laws. This essay will discuss the origin of law and examine the usefulness of equity law over common law, analyse weakness of common laws and distinguish in the way that these two jurisdictions operate....   [tags: Common law, Law, Equity, Jury]

Better Essays
970 words (2.8 pages)

Options For Raising Equity Funds Essay

- Q1. Options to raise equity funds. By understanding the equity base and financial statements of SRS LTD (Annual report, 2015) we can say company is performing better as the sales revenue is increasing every year. Company was having a turnover of Rs. 3447.83 crore in 2014, which increased to Rs 6000 crore in 2015 (Batra, 2015). Company invested a huge of amount in the real estate and has a land area of about 500 acres and now company is in process of building various projects as the land prices are going up on the daily basis so huge booking are made which is increasing the equity of the company (Srs real estate, 2015)....   [tags: Budget, Budgets, Zero-based budgeting]

Better Essays
1033 words (3 pages)

Legal Issues of Constitution of Trust Essay

- The legal issue of constitution of trusts is very important, judicial decisions over the years on cases where trusts were not properly constituted indicates that constitution of trusts could be quite complex and must be very cautiously done by a property owner as a simple factor could make his trust void. An express trust is completely constituted either by effectively transferring property to trustees or by effectively declaring a trust. In case of personal property, the declaration of the trust may be put in writing; however, equity will not perfect an imperfect gift....   [tags: equality, trusts, law, principle]

Better Essays
2731 words (7.8 pages)

Common Law and Equity Essay

- Common Law and Equity Inconsistent to draw up the relationship between common law and equity, we firstly have to define what is common law. What are the defects of common law, and to what extend equity have been created. From the development of common law and equity, what has been the effects of the Judicature Acts 1873-1875. What are the equitable maxims that are needed to be satisfied. What are the various kind of equitable remedies that have been developed....   [tags: Papers]

Better Essays
1122 words (3.2 pages)

Essay about Common Law and Equity

- Common Law and Equity In very early times - before King Alfred (849-899), there was no system of justice, which applied to the whole of the country. The population was not ruled by a single monarch, transport and communications were available to very few and no law books were available, however, the population was very small at this time, therefore meaning it was not required as much as nowadays. ================================================================= In 1066, William I made changes to the old system, introducing the Curia Regis and appointing judges - common law was first introduced during this time....   [tags: Papers]

Better Essays
798 words (2.3 pages)

Historical Development Of The English Legal System Essays

- The historical development of the English legal system has created a parallel system where equity operates alongside the common law, emphasizing a system that coherently has distinct legal differences in its application. The law of Equity in its complex nature has without doubt had a fundamental role in the development of the English legal system. Through recognizing its legal history of doctrines and principles established over centuries, equity has emerged to establish a distinct legal framework, which has subsequently been used to administer justice in relevant times....   [tags: Common law, Law, Equity, Equity]

Better Essays
1662 words (4.7 pages)

Does Equity Exist Today 's General Public, Justice Exists Essay

- Does equity exist in America. In today 's general public, Justice exists in America. There are many reasons that bolster the possibility of equity being appeared. A few reasons are as basic as various races being mistreated for a similar wrongdoing and notwithstanding giving migrants a chance to make America their home. These are two subordinate reasons of equity being indicated in light of the fact that when I hear the word equity, equity rings a bell. I trust decency, correspondence, equity and whatever is left of those honorable words all can mean a similar thing however are diverse in view of the circumstance they are utilized as a part of....   [tags: Jury, Crime]

Better Essays
954 words (2.7 pages)

The Theory Of The Equity Theory Essay

- The equity theory is the theory that I connected with and it made the most sense to me. I feel that it is very important for any manager to treat everyone fairly. If an employee perceives that they are being treated fairly, they will be motivated, will feel good about their work and be productive. Of course, if the employee does not feel that they are being treated fairly the reverse will occur; the poor productivity will eventually be noticed within the organization. I have been in the underreward/overreward situation personally in a prior employment, I felt so bad and so guilty for my co-workers....   [tags: Leadership, Management, Communication, Skill]

Better Essays
1733 words (5 pages)

Essay on Equity Vs. Social Inequity

- Equity vs. Social Inequity • According to Kranich (2005), equality by design addresses what the Constitution was said to be developed on that all men are created equal before God and before law. Unfortunately, the equality is based on advantages and disadvantages. In America it speaks to people’s ability to reap the fruits of a good society. In layman’s terms since we all bleed red blood we are all supposed to be equal. • Equity speaks to fairness as people’s ability to access things and when talking fairly it is the ability to access things fairly....   [tags: Discrimination, Egalitarianism, Social equality]

Better Essays
1097 words (3.1 pages)

A Gift as the Tansfer of Legal Property Essay

- A gift is the transfer of legal property such as land, a house or money. Since there is no consideration for the gift, a gift is not regarded a contract and as such a gift will fail if the person giving the gift does not take the necessary steps to divest himself from the gift. Where a gift fails it reverts back to the person intending to make the gift or to the estate of that person where the gift is testamentary. A completely constituted trust implies that the trust property is conferred to the trustees and the trust is binding on the donor who cannot revoke the trust....   [tags: equity, property, transfer of goods]

Better Essays
1949 words (5.6 pages)