By Martin Dixon
The purpose of this booklet is to aid scholars penetrate the various mysteries of fairness and trusts by way of proposing functional solutions to normal exam questions. additionally, an test has been made to give the topic as a complete in a dependent means, with easy concerns and relocating directly to tougher ideas. during this manner, the booklet can be utilized as a instructing instrument in addition to a revision reduction. during this re-creation, the chance has been taken to include numerous very important and vast ranging adjustments within the legislations of fairness and trusts, with specific emphasis at the Trustee Act 2000 and up to date case legislation advancements.
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Extra resources for Q&A Equity and Trusts 3rd edn (Q&A Series)
However, if a surrender did not fall within s 53(1)(c), a beneficiary (B) could orally surrender her interest to the trustee (T), who then might orally declare a new trust in favour of a third party (C) (assuming the property is not land). This amounts to a direct transfer of the equitable interest from B to C and, if writing were not required, would be a simple method of evading s 53. The last example of a transfer of an equitable interest considered by Romer LJ in Timpson’s Executors v Yerbury (1936) may, or may not, amount to a ‘disposition’ so as to bring it within s 53(1)(c) of the LPA, although the balance of authority is now that it does not.
Moreover, it is clear from Grey v IRC (1960) that a direction to a trustee by the equitable owner to hold on trust for a third person (here Frederick) does, in principle, amount to a disposition within s 53(1)(c) and must be made in writing. In our case, Billy has not simply orally instructed Thomas to hold the shares for Frederick but has, rather, written to his trustee to this effect. The case is, therefore, distinguishable from Grey on this point, but it still remains to be seen whether Billy’s form of writing complies with the terms of s 53(1)(c).
Finally, there is authority for the proposition that if a settlor has failed to constitute the intended trust, nevertheless it may be 25 Q & A ON EQUITY AND TRUSTS possible to conclude that the trustee holds the promise which the settlor made to him on trust for the beneficiary. In other words, instead of an incomplete trust of the property, it may be that there is a complete trust of the promise made by the settlor, in favour of the beneficiary, which the beneficiary or the trustee can then enforce (Fletcher v Fletcher (1844); Burton v FX Music (1999)).