Trust Law: Anomalous Exceptions & Problems

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Questions and Answers

What is necessary for a valid transfer of chattels?

Agreement from all parties involved

An oral agreement

Transfer of legal title

Delivery of the property (correct)

Under which section must a disposition of an equitable interest be in writing?

s.53(2) LPA 1925

s.53(1)(b) LPA 1925

s.53(1)(c) LPA 1925 (correct)

s.53(1)(a) LPA 1925

What is the likely consequence of Rassie's oral instructions to Bongi regarding the gold bars?

The instructions are legally binding despite not being written.

The gold bars are automatically part of Bongi's estate.

The gold bars will be transferred to Bongi immediately.

The disposition fails due to lack of written evidence. (correct)

What issue arises from the use of the term 'friends' in terms of trust?

It lacks conceptual certainty. Signup and view all the answers

Which statement accurately reflects the legal standing of Rassie's beach house transfer to Miriam?

The transfer cannot take effect as Rassie holds control over the decision. Signup and view all the answers

What is a key reason the intended trust over the shares in Invictus Limited might not arise?

The term 'relatives' lacks conceptual certainty. Signup and view all the answers

Which case illustrates a principle related to the three certainties in trust law?

All of the above Signup and view all the answers

In reference to the disposition of the gold bars, what is the implication of failing to provide written evidence?

The gold bars are regarded as Rassie's estate property. Signup and view all the answers

What is required for a non-charitable trust to be effective under English law?

It must have ascertainable beneficiaries. Signup and view all the answers

What must be established to ensure the constitution of a trust according to the case Milroy v Lord?

Legal title must be transferred to the trustee. Signup and view all the answers

In assessing certainty of objects, how is the term 'relatives' likely to be interpreted?

Broadly, which may cause conceptual uncertainty. Signup and view all the answers

Which requirement is NOT part of establishing a valid gift as outlined in Re Cole (1964)?

Formal registration with a legal authority. Signup and view all the answers

What is the consequence of Rassie failing to deliver the share transfer forms to Lood?

The trust for the shares is unconstituted. Signup and view all the answers

Why is the transfer of the beach house considered invalid?

The legal title has not been registered with Land Registry. Signup and view all the answers

What is the main issue regarding certainty of intention in Rassie’s email regarding the trust?

It demonstrates clear intention to create a trust. Signup and view all the answers

Which of the following is a potential consequence of the excessive vagueness of the term 'relatives'?

The trust may fail under Re Baden's Deed Trusts (No 2). Signup and view all the answers

Considering the requirements for the constitution of trusts, which option best applies to the intended trust over the 100,000 shares in Invictus Limited?

The trust is not likely to arise because the requirements under the Stock Transfer Act 1963 are not met and therefore, there is no other way for the trust to be constituted. Signup and view all the answers

Is the transfer of the antique rugby trophies to Siya likely to take effect?

No, because the transfer needs to be evidenced in writing and signed and this has not happened in this case. Signup and view all the answers

Is the disposition of the 50 gold bars likely to take effect?

No, because the disposition needs to be evidenced in writing and signed under section 53(1)(c) LPA 1925. Signup and view all the answers

Which of the following options best applies to the disposition of the 50 gold bars?

Mascall v Mascall Signup and view all the answers

What type of disposition does Rassie intend to do in relation to the law books?

A trust that has not been properly constituted. Signup and view all the answers

Upon what basis can it be determined if Rassie's intention to transfer the gold bars is valid?

Whether Rassie has delivered the gold bars to the intended recipient. Signup and view all the answers

What implication does the authority of Strong v Bird have on the trust established by Rassie?

It allows for the trust to be created without any delivery of the legal title. Signup and view all the answers

What is the significance of the Stock Transfer Act 1963 in relation to trusts?

It enhances the requirements necessary for a trust to be validly constituted. Signup and view all the answers

Study Notes

Question 1 - Anomalous Exceptions to Beneficiary Principle

English law trusts, not charitable, must have identifiable beneficiaries for effectiveness
The text highlights a principle that a trust must have ascertainable or ascertainable beneficiaries for validity
The discussion should critically analyze anomalous exceptions to this principle (exceptions where the beneficiary is not clearly defined/identifiable)

Question 2 - Problem Question: Trusts

Rassie, considering his life's accomplishments, decided to transfer assets.
Beach House: He transferred ownership to his daughter, Miriam, via a deed of transfer, but the transfer isn't registered.
Shares: He transferred 5% shares to Lood for Siya's relatives, but related documents were not delivered.
Trophies: Rassie promised trophies to Siya but did not deliver them.
Gold Bars: Rassie asked Bongi to transfer 50 gold bars to his grandson William.
Law Books: Rassie intended to allow friends to choose law books from his library.
Pet Rat: Rassie included a trust for his pet rat, Scabbers, for £50,000.
Estate: The residue of his estate goes to his niece, Lyudmila, with Lood as executor.

Transfer of Beach House

Transfer of real property needs a deed and registration (Land Registration Act 2002).
Rassie executed a deed but it hasn't been registered.
Legal title remains with Rassie.

100,000 Shares in Invictus Limited

5% of shares are intended for Siya's relatives.
Three certainties (intention, subject matter, and objects) must be met for the trust to be valid.
Legal title has not been transferred to the trustee.

Certainty of Intention

Rassie's email shows clear intention to create a trust.

Certainty of Subject Matter

The 5% (5,000 shares) of the shares are sufficiently certain.

Certainty of Objects

The word "relatives" may lack conceptual certainty (Re Baden's Deed Trusts (No 2) [1973]).

Constitution of Trust

Rassie failed to deliver the share transfer forms.
Trust is invalid due to lack of constitution (Milroy v Lord).

Antique Rugby Trophies

A valid gift needs intention, delivery, and acceptance (Re Cole [1964]).
Delivery was missing, making the gift incomplete.

50 Gold Bars

Disposition of equitable interest requires writing and signature (s.53(1)(c) LPA 1925).
Rassie's oral instructions are not sufficient.
Gold bars remain part of Rassie's estate.

Law Books

The term "friends" lacks conceptual certainty (Re Barlow's Will Trust [1979]).
This fails the trust.

Trust for Scabbers

Rassie included a trust for Scabbers, but the trust's duration is limited to the rat's life or 100 years, whichever is earlier.

Residue of the Estate

The residue of Rassie's estate is bequeathed to Lyudmila.
Lood is appointed executor.

Multiple Choice Questions (pages 4-5)

Coverage of multiple-choice questions about the validity, constitution, and certainty of the various proposed trusts.
Various details of the questions with respect to the legal requirements of the multiple options.

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Description

This quiz explores the principles of English law trusts, focusing on the necessity of identifiable beneficiaries for validity and the exceptions to this rule. It also presents practical problem situations regarding asset transfers, critically assessing their legal standings. Test your understanding of these crucial aspects of trust law.