Property Law - Equity, Trusts and Powers Flashcards Preview

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Flashcards in Property Law - Equity, Trusts and Powers Deck (87):
1

Who argued equity became a 'systemic body of principles as refined, rigorous and ultimately unyielding as anything produced by the common law'?

Jeffrey Hackney

2

What did Hackney say about equity?

Became a 'systemic body of principles as... unyielding as anything produced by the common law'

3

Section 49 Senior Courts Act 1981

Rules of equity prevail

4

What section of what Act states the rules of equity shall prevail?

Section 49 Senior Courts Act 1981

5

Does equity act in personam or in rem?

In personam

6

What case gives five requirements for a document to create a trust?

Williams v Central Bank of Nigeria

7

What are the five requirements for a doc to create a trust?

Shows with reasonable certainty the intention to create the trust, separation of property, identity of the trust property, the beneficiaries and the purpose of the trust

8

Williams v Central Bank of Nigeria gives five requirements for what?

For a document to create a trust

9

What case gives the 'given postulant' test?

McPhail v Doulton

10

What is another name for the 'given postulant' test?

Is or is not test

11

OT Computers v First National ratio

'Urgent suppliers' invalid description of beneficiaries

12

What case gave that 'urgent suppliers' was an invalid description of beneficiaries?

OT Computers v First National

13

McPhail v Doulton validated what description of beneficiaries?

Relatives and dependents

14

R v District Auditor, ex p West Yorkshire ratio

'The inhabitants of the county of West Yorkshire' was too large for a DT

15

What case gave that 'the inhabitants of the county of West Yorkshire' was too large for a DT?

R v District Auditor, ex p West Yorkshire

16

Re Manisty's Settlement ratio

'Such... persons as the trustees think fit' was a valid description of beneficiaries

17

What case gave that 'such... persons as the trustees think fit' was a valid description of beneficiaries?

Re Manisty's Settlement

18

Who gave the reasoning for the given postulant test in Morice v Bishop of Durham?

Lord Eldon

19

What did Lord Eldon say of the given postulant test in Morice v Bishop of Durham?

It is important to know who the beneficiaries are because they are the only one who can enforce the T

20

What case stated that the use of imperative words is required for intention of a trust, but no need to use the word 'trust'?

Wright v Atkyns

21

Wright v Atkyns on intention

Need to use imperative words but no need to use the word' trust'

22

Lamb v Eames on intention

If a trust fails for lack of intention, T receives a gift of the property instead

23

Which case stated the effect of a trust failing for intention?

Lamb v Eames

24

What case stated that if a trust fails for lack of intention, T receives a gift of the property instead?

Lamb v Eames

25

Palmer v Simmonds on subject matter of a trust

'The bulk of my residuary estate' was sufficiently certain

26

What case stated that 'the bulk of my residuary estate' was sufficiently certain for subject matter of a trust

Palmer v Simmonds

27

Hunter v Moss on subject matter of a trust

5% of shares in my company was sufficiently certain

28

What case found that 5% of shares in my company was sufficiently certain for subject matter of a trust?

Hunter v Moss

29

Name two types of trusts for persons

Fixed and discretionary

30

Name two types of trusts for purposes

Private and charitable

31

Name two types of trusts by law

Resulting and constructive

32

Name two types of powers

Fiduciary and mere/bare powers

33

Re Gulbenkian on fiduciary powers

Trustee needs to carefully consider the choice of object before they exercise their discretion

34

What type of power does not require careful consideration?

Mere/bare powers

35

In the case of what power is there no ability to appoint outside the class of objects?

Mere/bare powers

36

Klug v Klug on duties of power-holders

No exercise of discretion so Court did it in daughter's favour

37

Klug v Klug

Frenchman

38

Re Manisty's settlement on duties of power-holders

Court can intervene if Trustees don't consider a request from a potential beneficiary, or they act capriciously

39

In what case did the court decide they will intervene if the trustees do not consider a request from a potential beneficiary, or they act capriciously?

Re Manisty's Settlement

40

Mettoy Pension Trustees v Evans on duties of power holders

Trustees are under a duty to select beneficiaries from a class and decide distribution of trust property

41

Which case stated that trustees are under a duty to select Bs from a class and decide distribution of trust property

Mettoy Pension Trustees v Evans

42

Schmidt v Rosewood Trust on duties of power-holders

Right to seek disclosure of trust documents does not depends on the right or claim of a B to a proprietary interest in the trust property

43

Which case stated that the right to seek disclosure of trust documents does not depend on B having a proprietary interest in the trust property?

Schmidt v Rosewood Trust

44

Which Convention is clearly influenced by English trusts?

Hague Convention

45

Who and in what case regarded equity and common law as running 'side by side' but do not 'mingle their waters'?

Lord Diplock in United Scientific Holdings v Bunley BC

46

United Scientific Holdings v Bunley BC per Lord Diplock

Equity and common law run 'side by side' but do not 'mingle their waters'

47

Who declared Diplock's statement in United Scientific Holdings as 'mischievous and deceptive'?

Maxton

48

Who believed the Judicature Acts 'did not effect a major substantive merger of law and equity'?

Maxton

49

What did Maxton say of the Judicature Acts?

They 'did not effect a major substantive merger of law and equity'

50

Who 'strongly preferred' the fusion school of thought for E and CL?

Burrows

51

Why did Burrows strongly prefer the fusion school of thought?

'Importance of coherence in the law'

52

What four categories did Burrows divide English private law into?

E and CL cannot be distinguished; E and CL exist coherently; E and CL exist coherently but nothing is gained so fusion; and they do not coexist, so need to change law to combine both

53

What did Hayton and Mitchell say of the second category of English private law per Burrows?

Even committed fusionists like Burrows still find it useful to refer to jurisdictional origins, e.g. in the case of trusts, to distinguish between E and CL

54

Who stated that it is 'universally acknowledged that... there is no true or conclusive definition of a trust'?

Hayton

55

what did Hayton state about the definition of a trust?

There is no true or conclusive definition

56

How did Hayton believe we could define trusts?

Look at 'certain core characteristics to distinguish them from other legal concepts'

57

Who believed we could define trusts by looking at 'certain core characteristics'?

Hayton

58

Why did Hayton state it to be important that S usually 'drops out of the picture' in an express trust?

Distinguishes between contracts and trusts

59

How does the fact that S usually 'drops out of the picture' distinguish a trust from a contract?

S usually WANTS to dispose of their rights, and their motive may be to place the asset beyond the reach of actual/potential creditors

60

What three advantages do Hayton and Mitchell give of a DT?

Allows flexibility for future decisions, creditors will not generally have access to the trust fund and limited tax liability to beneficiaries

61

How have P encroached on the limited tax liability of beneficiaries under a DT?

Levied certain charged on inheritance through lifetime trusts since 2006

62

What four examples show S's influence over the trust, after initial set-up, may be exaggerated?

Saunders v Vautier, B can 'adopt the investment' if T sells without permission, rules against perpetuities and general rules prohibiting S (e.g. private purpose trust)

63

Who gives two problems with the analysis that creating a trust involves S transferring legal title to T and equitable to B?

Hayton and Mitchell

64

What two problems do Hayton and Mitchell give with the analysis that creating a trust involves S transferring legal title to T and equitable to B?

HoL have rejected that S's initial property has both a legal and equitable title (Westdeutsche v Islington) and creation of aa trust need not involve fragmentation of the property (Smith v Anderson)

65

Westdeutsche v Islington ratio

HoL rejected that S's initial property has both a legal and equitable title

66

In what case did the HoL reject that S's initial property has both a legal and equitable title?

Westdeutsche v Islington

67

In what other areas is the decision in Westdeutsche v Islington problematic?

RTs - cannot say S 'retains' a pre-existing equitable interest in the property

68

Burgess v Wheate ratio

If T no longer owes a duty to anyone, T can use the property for her own benefit

69

in which case did the court decide that if T no longer owes a duty to anyone, T can use the property for her own benefit?

Burgess v Wheate

70

What are the three duties of a trustee?

Comply with terms of the trust, fiduciary duty to act exclusively in the interests of B and take reasonable care in exercising powers

71

If T does not comply with terms of the trust, what can B do?

Bring a claim for 'substitutive performance'

72

Given that the standard fiduciary duty imposed on trustees is quite strict, what can trust documents do?

Implement more relaxed standards

73

Although trust documents can implement more relaxed fiduciary duty standards, what case gives a limit on these standards?

Armitage v Nurse

74

What did Millett LJ in Armitage v Nurse say?

There is an 'irreducible core of obligations... fundamental to the concept of a trust' - if B has no 'rights enforceable against T, there is no trust'

75

Who said that there is an 'irreducible core of obligations... fundamental to the concept of a trust'?

Millet LJ in Armitage v Nurse

76

Why is the irreducible core of obligations crucial to the existence of trusts, according to Ermitage v Nurse?

If B has no 'rights enforceable against T, there is no trust'

77

The reasonable care to be taken in exercising trustee powers is no different to what other test?

The basic rules applying to a standard negligence claim in contract/tort

78

Bristol and West BS v Mothew ratio

Reasonable care in exercising trustee powers is no different to the basic rules applying to a standard negligence claim in contract/tort

79

What case highlighted that the reasonable care in exercising trustee powers is no different to the basic rules applying to a standard negligence claim in contract/tort?

Bristol and West BS v Mothew

80

What does The Restatement Principle state about trusteeship?

'A trust will not fail for want of a trustee'

81

What states that a 'trust will not fail for want of a trustee'?

The Restatement Principle

82

Schmidt v Rosewood on the power to supervise

Power is 'fundamental'

83

Red Baden's Deed Trusts (No.2) on power to supervise

May apply even in a DT

84

What case stated that the power to supervise is 'fundamental' to the trust concept?

Schmidt v Rosewood

85

What case suggested the power to supervise may even apply in a DT?

Re Baden's Deed Trusts (No.2)

86

What is a disadvantage of the fact that the trust is depersonalised?

Law does not distinguish between Ts personal and trustee debts

87

What is an advantage of the fact that the trust is depersonalised?

Beneficiary is protected from T's insolvency due to two patrimonies

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