Nobody downloaded yet

The Law of Trusts - Case Study Example

Comments (0) Cite this document
A paper "The Law of Trusts" claims that it is also necessary to consider the Law of Property Act 1925 which specifies certain formalities relating to the declaration of trusts and the disposition of beneficial interests. A promise contained in a deed is called a covenant…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.3% of users find it useful
The Law of Trusts
Read TextPreview

Extract of sample "The Law of Trusts"

Download file to see previous pages In 2004 Brian entered into a covenant under a trust deed with his children Pat and Richard. Pat and Richard can sue against Brian at law for damages to compensate Pat and Richard for their loss of expectation if Brian does not perform his promise. In Cannon v Harley1 a father promised his daughter by deed that he would pay her any sum exceeding 1,000 which he received under his own father's will. When he failed to do so, she successfully sued him at law for the amount she would have obtained had his promise been performed. It is important to note, however, that the same promise was not enforceable in equity. Equity will enforce promises made for consideration, but not ones whose only claim to enforcement is that they are contained in a deed. None of the property referred to in the 2004 covenant has been transferred to Pat and Richard. Brian appointed Tony and Nathan as his executors and trustees under his will. Now the question arises who can enforce the covenant. If the Contract (Rights of Third Parties) Act 1999 were to apply to covenants (which is doubtful) then assuming the requirements of the Act were satisfied, Pat and Richard would be able to enforce the covenant at law and obtain damages for lost expectation. It can be argued that they hold the benefit of the right to sue on the covenant on trust for Pat and Richard. If this argument, the 'trust of the covenant' argument, can be made out, then Pat and Richard can compel Tony and Nathan to sue Brain. The assumption is that Tony and Nathan would recover substantial damages, which they would then hold on trust for Pat and Richard. There are three difficulties, which stand in the way of this argument succeeding. To be a valid trust, it is necessary three certainties, formalities, and perfect constitution. A trust will be perfectly constituted where the rights, which are to form the subject matter of the trust, are vested in the intended trustee. The principle laid down in the case Milroy v Lord2, Lord Turner LJ explained three ways of benefiting third parties. The easiest way to benefit the third party is by an outright gift. If the Beneficiary is minor and a gift is a real property then it is not possible. In this situation, he needs to create a trust or declare himself as a trustee. The transfer to the trustees must accord with the rules applicable to the property concerned. Legal estates in land must transferee by deed, equitable interest, and copyright by writing (which may include an electronic document), chattels by deed of gift or by an intention to give coupled with a delivery of possessions, a bill of exchange by endorsement, and shares by the appropriate form of transfer followed by registration.  The traditional approach also adopted in subsequent cases like Re Fry3, required all stage should be completed. However, if the settlor wants to become a trustee himself he must declare it in clear and unequivocal terms, which carry out man's intention.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Law of Trusts Case Study Example | Topics and Well Written Essays - 3000 words”, n.d.)
The Law of Trusts Case Study Example | Topics and Well Written Essays - 3000 words. Retrieved from
(The Law of Trusts Case Study Example | Topics and Well Written Essays - 3000 Words)
The Law of Trusts Case Study Example | Topics and Well Written Essays - 3000 Words.
“The Law of Trusts Case Study Example | Topics and Well Written Essays - 3000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Trusts Law. Non-Charitable Purpose Trusts

...? Critically evaluate the rationale behind the rule that non-charitable purpose trusts are unenforceable; and consider critically the ways in which it has been suggested by academic commentators that such trusts could be valid and enforceable. - An Analysis Introduction The conventional observation is that non-charitable purpose trusts are void. In “Re Endacott”1, Lord Evershed M.R viewed that “a non-charitable trust under English law cannot be enforceable as it is not having ascertainable or quantifiable beneficiaries.” In “Bowman v. Secular Society”2, Lord Parker was of the view that “benefit to individuals should be an essential ingredient of a...
10 Pages(2500 words)Essay

Equity and the law of trusts

...? Equity and the law of trusts Equity and the law of trusts Scotland is a country with strong families and family morals. Government of Scotland does not get involved in family matters and they make sure that family stays a personal matter for the people. The government of Scotland tries to make sure that they help people by making sure that they are inculcating family values and trusts amongst each other and not making rules and regulations regarding what to do and how to behave with each other or raise their children.1 The laws which are designed for the family, in such laws the rules are regarding the responsibilities which are related to the couples, the parents along with the people who are a part of it and who participate... in the...
7 Pages(1750 words)Essay

Equity and the Law of Trusts

...Running head: EQUITY AND LAW Equity and Law [Click here and type [Click here and type your s Equity and the Law of Trusts It can be said that the entire concept of laws of the courts was more of an "accident of history" (Wikipedia: Equity) which did date back to the medieval times to the 13th century. But this is not the court of law that we are most impressed upon today, but, merely an court that enforced what the King would pronounce law at the time of his reign. It was not until the 15th century that the Chancery was provided the rights to hold judicial power in the arena of Equity Trusts and upon...
6 Pages(1500 words)Essay

Law of Trusts

..."Law of Trusts" As a general principle law does not uphold purpose trusts. Trusts for charitable purposes are, however, a major exception. What counts as charitable is the source of a never ending supply of case law. A trust to be valid must have certainty of objects. However charitable trusts do not need to any identifiable beneficiary at all since the general overseeing of such trusts is the responsibility of Charity Commissioners, while the Attorney General is entrusted with the task of enforcing such a trust in court. A gift to charity will be upheld, even if there is...
10 Pages(2500 words)Essay

Law of trusts

...Order No 132764 PART ESSAY. QUESTION ADVISE TO TERESA (a) According to the law of trusts, Teresa is the trustee of a fund whose beneficiaries are her aunt's two children Austin 22 and Morris 15 they are not entitled to equal shares before the age of 25. Here Teresa is a trustee, meaning she holds the fund for the benefit of two children. This means that all the money accruing from this trustee whether directly or indirectly should go towards helping these children by providing for their needs like accommodation, food, clothing, education and other necessities they will require. In this case, Teresa should ensure that all the income accruing from various investments is well saved for the benefit of the children. The children being... the...
12 Pages(3000 words)Case Study

The Law of Trusts and Equitable Obligations

...The law presumes a resulting trust exists where property is purchased in the of another. Whilst the legal passes to the transferee, the transferor retains the beneficial interest, and it is said that the transferee holds the legal title on trust for the donor. One exception to this is a presumption of a gift - called a presumption of advancement - where it will be for the donor to show that s/he did not intend to make a gift to a family member (Smith: 23). This presumption of a resulting trust would act in Martin's favour in the sense that the beneficial interest would result back to him. Whether or not the courts will find so in this instance is open to debate. As it is a presumption it is rebuttable by the donees showing... transferred...
8 Pages(2000 words)Case Study

Law of Trusts

...1) Does charity remain a valuable legal concept for the UK in 2006 and for the future? I. Introduction The legal concept of charity back over 400 hundred years1 ago starting from the enactment of the Statute of Charitable Uses 1601, otherwise known as the Elizabethan 1 law.2 However, as with most old laws which have outlasted several generations, this law had become moot and academic although the concept of charities remains to be relevant to society. For purposes of understanding the concept of charity better, let us look into how the framers of the Elizabethan law define charity. Charities were not a product of our common law but rather stem from the...
8 Pages(2000 words)Essay

The Law of Trusts

...The Law of Trusts In order for a trust to be validly created the three certainties must be present. First there must be certainty of intention1, certainty of subject matter2 and certainty of objects3. Having established that the three certainties need to be present to make the trust valid it is necessary to look at whether the declarations made by Margaret can be read as an intention to create a trust. For a trust to be fully constituted the intended separation between the legal and equitable title must have occurred. With an express trust where the owner of the property declares himself to be a trustee, the...
10 Pages(2500 words)Essay


...of an equitable interest. The legal and equitable estates had not been divided prior to the making of the security agreement.” 2 This qualifies the applicability of the requirement established in the law. Moreover it has been contended that The underlying policy was to :- a. prevent fraud by prohibiting oral hidden transfers of equitable interests under trusts and b. assist trustees by enabling them to identify the whereabouts of the equitable interest subsisting under a trust. 3 This indicates that even civil interactions among citizens state policy is to prevent prejudice, injury and fraud. That is made manifest by the measures embodied in law. It is the policy of...
14 Pages(3500 words)Essay

Unofficial support for LOTEs

1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic The Law of Trusts for FREE!

Contact Us