Flashcards
Intro to Trusts
Cards in this deck (16)
- 1KNIGHT v KNIGHTThree certainties - vital to existence of a trust:
1. Certainty of intention
2. Certainty of subject matter
3. Certainty of object - 2Certainty of intention CHALLINOR v JULIET BELLIS [2016]Settlor must manifest an OBJECTIVE INTENTION to create the trust
Settlor can create a trust without B's knowledge - 3Certainty of Intention PAUL v CONSTANCE [1977]"the money is as much yours as it is mine" - taken to be sufficient for creation of express trust
CoA seems to assume that in a trust, S holds the property on trust for himself and for B as beneficial tenants in common
Difficult to reconcile with Richards v Delbridge - 4Certainty of intention RICHARDS v DELBRIDGE [1874]Not sufficient for S to objectively manifest an intention to benefit someone - they must intend for T to take on the legal duties of a trustee - more than a 'wish' or a 'hope' that T will use the money for that purpose
- 5Certainty of intention HENRY v HAMMOND [1913]Rule of trust law = T must keep funds separate from his own.
If S says he does not care what T does with the money - may be taken as evidence that there was no intention for an express trust to be create - 6Certainty of intention BYRNES v KENDLE [2011]- Objection is construed objectively
Cannot entitle a document "Acknowledgement of Trust" then claim you had no intention to create a trust - 7Certainty of intention ROBINSON v PETT [1734]The Trustee's CONSENT is needed to create an express trust - T can disclaim, cannot be forced to be a trustee
- 8Certainty of intention HARRIS v SHARP [2003]'a trust will not fail for want of a trustee'
"a trustee cannot, by disclaiming, bring an end to the beneficial limitations which are contained in the trust - 9WESTDEUTSCHE LANDESBANK v ISLINGTON LBC [1996]Once T is aware he is intended to hold the properly on trust for B, he cannot conscionably take the property for himself, or transfer it to someone else
- 10RE LYSAGHT [1996] HALLOWS v LLOYD [1888] JASMINE TRUSTEES LTD v WELLS [2008]Lysaght - no cherry picking of duties by T
Hallows - T has a duty to familiarise themselves with trust, is not an excuse for breach to say you did not read it
Jasmine Trusts - cannot purport to being a T without being appointed by S (a trustee de son tort - a T of his own wrong) - 11HARDOON v BELILIOSBeneficiaries can also disclaim
"no one can be made the beneficial owner of property against his will" - 12RE DION INVESTMENTS [2014]Without special powers, T HAS NO POWER TO CHANGE THE BENEFICIARIES OF THE TRUST
Once express trust has been established - S and T have no ability to subsequently deprive B of the rights/interests of the trust or vary terms of the trust - 13AIR PRODUCTS CANADA v SCHMIDTTransfer of property is absolute - S loses control over the property
CAN include trust instrument for S to retain rights to appoint Ts, change Bs, withdraw property
In reality - in most family trust, the S will retain de facto power over decisions about the trust, but no legal rights - 14SAUNDERS v VAUTIERThe rule in Saunders allows beneficiaries to terminate the trust and take conveyance of the legal title - with unanimous consent of all
Seems inconsistent with principle that trust should give effect to intention of S
Does not enables Bs to vary the trust terms - "beneficiaries cannot at one and the same time override the pre-existing trusts and keep them in existence" (Re Brockbank) - 15IRC v HOLMDEN [1968]- If all Bs are sui juris, they can join together with Ts and declare different trusts which will supersede the original
- Also inconsistent with idea that trusts are created to carry out intention of S - 16—
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- Undergraduate Laws LLB (TRUSTS) Flashcards on Intro to Trusts, created by Bethany Fieldhouse on 18/08/2018.
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- Bethany Fieldhouse
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