Trust Law Seminar 4 PDF

**Questions:** 1. "No principle perhaps has greater sanction or authority behind it than the general proposition that a trust by English law, not being a charitable trust, in order to be effective, must have ascertained or ascertainable beneficiaries" (Lord Evershed M.R.in *In Re E...

**Questions:** 1. "No principle perhaps has greater sanction or authority behind it than the general proposition that a trust by English law, not being a charitable trust, in order to be effective, must have ascertained or ascertainable beneficiaries" (Lord Evershed M.R.in *In Re Endacott, Decd* \[1960\] Ch. 232 at p. 246). In light of this quote, critically discuss the existence of the anomalous exceptions to the beneficiary principle. 2. The below problem question brings together legal issues covered in seminars 2-4: three certainties, constitution and formalities of trusts and the beneficiary principle. Please prepare your answer before the seminar. While walking to work one day, Rassie began to think about all that he had accomplished in his long life and all of the property that he had accumulated along the way. Rather than leave it to his friends and family in his will he decided to **dispose of it now so that he could see them enjoy the fruits of his labour**. **Transfer of the Beach House** -- Transfer of real property requires execution of a deed and registration with Land Registry to complete the transfer of legal title under Land Registration Act 2002. Rassie executed a deed and sent it to Miriam, demonstrates intention to transfer. However, documents have not been registered, and legal title remains with Rassie. **100,000 Shares in Invictus Limited** -- 5% of shares for Siya's relatives Three certainties must be satisfied -- Knight v Knight (1840) Constitution of a trust requires legal title to trust property be transferred to trustee -- Milroy v Lord (1862) **Certainty of Intention:** Rassie's email shows a clear intention to create a trust. **Certainty of Subject Matter:** The 5% (5,000 shares) is sufficiently certain. **Certainty of Objects:** The term \"relatives\" may lack conceptual certainty. If interpreted broadly, it could fail under **Re Baden's Deed Trusts (No 2) \[1973\]**. **Constitution:** Rassie did not deliver the share transfer forms to Lood, so the trust is unconstituted under **Milroy v Lord**. Conclusion -- Trust is invalid due to lack of conceptual certainty of object and failure of constitution **Antique Rugby Trophies** -- Valid gift of trophies been made Valid gift: Intention of gift, delivery of gift and acceptance -- Re Cole (1964) Rassie's intention to gift is clear from his statement to Siya. However, the trophies were not delivered, and delivery is required for a valid transfer of chattels. **50 Gold Bars** -- A disposition of an equitable interest must comply with **s.53(1)(c) LPA 1925**, which requires it to be in writing and signed Rassie's oral instruction to Bongi does not satisfy the writing requirement under **s.53(1)(c)**. Without written evidence, the disposition fails, and the gold bars remain part of Rassie's estate. **Law Books** -- Term "friends" lacks conceptual certainty, as established in Re Barlow's Will Trust \[1979\], and thus power of appointment fails **Trust for Scabbers** -- **Residue of the Estate** -- - Lyudmila **Now answer the below multiple-choice questions relating to the above scenario:** 1. Is the transfer of the beach house to Miriam likely to take effect? a. Yes, because all the requirements for transferring the legal title of the house to Miriam have been met. b. Yes, because Rassie has put the matter beyond his control by sending the necessary documents to Miriam. All Miriam has to do is register her title with the Land Registry. c. **No, because Rassie has not put the matter beyond his control. Therefore, he or his estate can change the decision to transfer the beach house to Miriam.** d. No, because it would be unconscionable for Rassie or his estate to change the decision to transfer the beach house to Miriam. 2. Considering only the three certainties, which of the following options best applies to the intended trust over the 100,000 shares in Invictus Limited? e. The trust is likely to arise because it is clear that the settlor intends to create a trust and this is all that is required for this trust to arise. f. The trust is likely to arise because the term 'relatives' is conceptually certain, and Rassie has specified the percentage of shares to be held on trust. g. The trust is not likely to arise because the term 'relatives' is not conceptually certain and Rassie should have clearly identified/segregated the shares to be held on trust. h. **The trust is not likely to arise because even though the percentage of shares to be held on trust has been specified, the term 'relatives' is not conceptually certain.** 3. Which of the below options best applies to the above scenario in relation to the three certainties? i. ***McPhail v Doulton* and *Hunter v Moss*** j. *McPhail v Doulton* and *Re London Wine* k. *Re Gulbenkian* and *McPhail v Doulton* l. *IRC v Broadway* and *Hunter v Moss* 4. **Considering only the requirements for constitution of trusts, which of the following options best applies to the intended trust over the 100,000 shares in Invictus Limited?** m. The trust is likely to arise because Rassie orally informed Lood about the creation of the trust and no further requirements are applicable. n. The trust is likely to arise because of the authority of *Strong v Bird.* o. 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. p. The trust is not likely to arise because Rassie has not done everything within his power to transfer the legal title over the shares under the authority of *Re Rose* and this is required for the trust to be constituted. 5. Is the transfer of the antique rugby trophies to Siya likely to take effect? q. Yes, because Rassie has orally informed Siya about his intention to give her the antique rugby trophies and this is all what is required for the transfer to take effect. r. Yes, because there are no requirements for the transfer of the legal title of the antique rugby trophies. s. No, because the transfer needs to be evidenced in writing and signed and this has not happened in this case. t. No, because even though Rassie had the intention to make a gift of the rugby trophies to Siya, he has failed to deliver them to her. 6. **Is the disposition of the 50 gold bars likely to take effect?** u. Yes, because the disposition does not need to be evidenced in writing and signed. v. Yes, because the requirements under section 53(1)(b) LPA 1925 have been met. w. No, because the disposition needs to be evidenced in writing and signed under section 53(1)(c) LPA 1925. x. No, because even though the disposition does not need to be evidenced in writing and signed, Rassie has not done everything within his power to transfer the legal title of the shares. 7. **Which of the following options best applies to the disposition of the 50 gold bars?** a. *Grey v IRC* b. *Vandervell v IRC* c. *Mascall v Mascall* d. *Re Rose* 8. **What type of disposition does Rassie intend to do in relation to the law books?** y. To create a trust. z. To create a power. a. A gift subject to a condition precedent. b. A gift subject to a condition subsequent. 9. **Is the disposition in relation to the law books likely to be valid?** c. Yes, because the term 'friends' is conceptually certain in the context of this intended trust. d. Yes, because the term 'friends' is conceptually certain in the context of this intended gift. e. No, because the term 'friends' can never be conceptually certain. f. No, because the term 'friends' is not conceptually certain in the context of this intended power.