formalities Flashcards
(54 cards)
What is the primary purpose of formality in trust creation?
To prevent casual creation of trusts and ensure compliance with legal requirements
Formality facilitates the conveyance of interests to beneficiaries and protects trustees from mistakes.
What does Section 53(1) of the Law of Property Act 1925 pertain to?
It creates the law pertaining to formality in the creation of trusts.
What are the three certainties required for the creation of a trust?
- Conveyance of interest
- Intention to create a trust
- Identifiable beneficiaries
How must interests in land be created according to Section 53?
Interests in land must be created in writing, signed by the person creating or conveying the same, or by their agent.
True or False: A declaration of trust respecting land must be evidenced in writing.
True
What happens if a trust is orally declared but lacks written evidence?
The trust is not enforceable.
In the example given, what written evidence was used to support the trust for Brenda?
A letter from Bill informing Brenda that Blackacre is held on trust for her.
What is the significance of Section 53(1)(b)?
It allows declarations of trust to be made orally but requires written proof to show that the trust is intended.
What is the principle behind Rochefoucauld v Bousted?
A statute designed to prevent fraud cannot be used to perpetrate a fraud.
What constitutes a ‘disposition’ under Section 53(1)(c)?
A transaction that covers every transaction involving a subsisting equitable interest.
What are the implications of a failure to comply with Section 53(1)(c)?
The disposition of the equitable interest is void and does not transfer to the transferee.
According to Hudson v Hathway, what constitutes a disposition in writing?
An email ending with a person’s first name can amount to a disposition in writing.
What is the distinction between ‘assignment’ and ‘disposition’?
‘Assignment’ refers to the transfer of an interest, while ‘disposition’ encompasses a broader range of transactions.
What case established that oral instructions can suffice for transfers under certain circumstances?
Vandervell v IRC
What was the outcome of the Hodgson v Marks case regarding Section 53(1)(b)?
The widow retained her absolute interest by way of Resulting Trust despite the lack of compliance with Section 53(1)(b).
Fill in the blank: A disposition of subsisting equitable interest must be in _______.
writing
What is the effect of a written document attracting stamp duty?
It is a payment to the IRC based on the value of the property or interest transferred.
What is the legal status of resulting and constructive trusts under Section 53(2)?
Written evidence is not required for resulting and constructive trusts.
What was the result in Bannister v Bannister regarding the cottages?
A constructive trust was established because the agreement was subject to the woman’s living condition.
According to Grey v IRC, when does Section 53(1)(c) apply?
It applies when there is a direction to the same trustee to hold on the same trusts, different trusts, or to transfer to different trustees.
What does ‘subsisting equitable interest’ refer to?
An equitable interest that is separate from the legal interest.
What is the significance of the case Oughtred v IRC?
It clarified that an oral agreement to transfer equitable interest was not effective until a written transfer was executed.
What is the main function of Section 205(1)(ii) of the LPA 1925?
It defines ‘conveyance’ to include disposition.
What was the intention for the oral agreement?
To avoid stamp duty on the writing requirement and reduce estate tax.
