Trusts and Their Formalities

A trust that comes into effect after the death of the settlor, usually created through a will.

A trust that is created during the lifetime of the settlor and operates during their lifetime.

Requirements like writing, signing and witnessing that must be fulfilled for a trust to be valid.

The process of transferring assets to a trust and creating the trust itself.

The transfer of ownership of assets or rights to a trust.

Requirements for a valid testamentary trust, including writing, signature, and witnesses.

The requirement that transfers of land or interests in land must be in writing to be valid.

A trust that isn't void, but can't be enforced in court if the proper formalities aren't followed.

The principle that equity will not allow a statute to be used as a tool for fraud. If a trust is created orally, but then the trustee tries to exploit the lack of formality to unfairly benefit themselves, equity can intervene and uphold the trust.

The case where an oral trust was upheld despite not meeting formality requirements in s.53(1)(b) of the Law of Property Act 1925 because the trustee's actions were fraudulent. The court decided that allowing a statute to enable fraud would be unjust.

A requirement that certain agreements, including trusts, must be put in writing and signed to be legally binding.

A trust created orally, without meeting the formalities of s.53(1)(b) LPA 1925.

Section 53(1)(b) of the Law of Property Act 1925, which sets out the requirement for trusts of land to be in writing and signed.

A trust that automatically arises in certain situations, without any express agreement, to prevent unjust enrichment.

Hodgson v Marks dealt with a resulting trust, not an express trust. A woman transferred land to a man orally, and the man later sold the land to another person. The court held that a resulting trust arose in favour of the woman because she had contributed to the purchase of the land.

A trust created by the deliberate actions of the settlor (creator of the trust). It's explicitly stated, usually in writing, and follows all formalities.

Legal requirement for transferring ownership of land to a trustee. It must be done through a written document (deed) that meets specific criteria.

A type of trust that arises when someone tries to benefit from a situation without fulfilling their legal obligations, often leading to a court-imposed trust to prevent unfair gain.

A way for a beneficiary of a trust to transfer their rights to another person. It's governed by Section 53 of the Law of Property Act 1925 (LPA).

The requirement of having a written document (deed) for any transfer of land ownership. It needs to be signed and comply with specific regulations.

A written document that contains all the terms of a purchase and must meet the criteria of section 1 of the Law of Property (Miscellaneous Provisions) Act 1989.

Reasons for having formal requirements for transferring land ownership. They ensure predictability, protect against fraud, and provide a clear record of ownership.

A direction to trustees to hold property on trust for another beneficiary, governed by Section 53 (1)(c) LPA 1925.

A landmark case illustrating the application of Section 53(1)(c) LPA 1925 to directions given to trustees.

A direction to trustees to transfer legal title of property to a new owner. Unlike a direction to hold for another beneficiary, this involves changes in ownership.

A landmark case illustrating the application of Section 53(1)(c) LPA 1925 to directions given to trustees to transfer legal title.

The key difference lies in the nature of the instructions given to the trustees.

The process of ending a trust. In fixed trusts, each beneficiary can instruct the trustee to distribute their share. In discretionary trusts, all beneficiaries must agree.

A rule allowing beneficiaries to end a fixed trust by instructing the trustee to distribute their shares.

These are the conditions that must be met for the beneficiaries to exercise their right to terminate a trust.