Trusts

Question 1

Express trusts

Answer 1

• ‘clear declaration of trust’ [Paul v Constance]
• s.53 (1)(b) LPA = manifested and signed in writing
• express trusts are conclusive = Goodman v Gallant

Question 2

Resulting trusts

Answer 2

• beneficial interest in proportion to the purchase money [Lloyds Bank v Rosset]
• useful in commercial relationships = Laskar v Laskar
• useful in the 1970s = Pettit v Pettit = arguably unfair now as it is a different social era
• social norms changing was recognised in Jones v kernott, so contructive trusts are now used

Question 3

Constructive trusts

Answer 3

• CT arises whenever equity thinks it should = Paragon Finance plc v DB Thakera & co
• a CT must arise in good conscience = Beatty v Guaggenheim Exploration Co
  Common intention contructive trust [CICT]
• judges look forevidence of intention = Gissing v Gissing
• CICT from implied agreements = Stack v Dowden
• S v D is more suitable than resulting trusts in Lloyds Bank v Rosset as it takes into account domestic expenses, not just contributions to the purchase price

Question 4

Stack v Dowden

Answer 4

• H + W had compltely separate finances
• Lady Hale sets out the tests for working out their shares …
  1. equity follows the law, so beneficial title teh same as legal
  2. then you look at the circumstances to support this = does it rebut the presumption
  3. quantify the shares
• their different contributions to the purchase price was not enough to rebut the presumption, but the context does as they kept strictly separate finances
  After S v D …
• Jones v Jernott = crystallising shares
• Marr v Collie = if you don’t know which trust to apply, go for CT

Question 5

Trusts of land

Answer 5

Trust of Land ad Appointment of Trustees Act 1996 [TLATA]
- where there is land and a trust this Act applies [s.1]
- a trust includes any decalration of trust [s.2]

Question 6

Trustee’s powers TLATA

Answer 6

trustee’s powers = s.6
- power to partition = s.7
- power to delegate = s.9(1)
- powers must be exercised unanimously = s.14

Question 7

Beneficiaries’ rights TLATA

Answer 7

• right to be consulted = s.11
• right to occupy = s.12 [subject to s.13 factors and only if the land is available]
• right to remove or appoint trusttes unaminously = s.19, s.20, s.21
• right ot apply for a court order = s.14

Question 8

Essay Questions
Advantages and disadvanatges of trusts

Answer 8

• CT arises whenever equity thinks it should [Paragon Finance plc v DB Thakera & co], so the law is uncertain
• SvD was a profound change in the law as Lloyds Bank v Rosset only considered contributions to the purchase price, not other domestic expenses, although more than separate contributions is needed to displace the presumption that equity follows the law so JT in equity also