| Facts/Ratio | Case | Extra Info |
|---|
| Beneficaries all sui juris adults, can end trust and divvy up property... | |
| New bank account, use this money to pay dividend. Surely a debt? No - when RR paid it would have become a debt, til then, trust. | |
| Croydon department store struggling - deposits into separate account - customers don't know about it... trust. | |
| Mum lives with married couple... adds extra room for £600 - row, sues, Denning says constructive trust... odd, doesn't get share of house. | |
| 100% mortgage - company sell - they cannot keep the excess on constructive trust from dishonest conduct. | |
| Lifer - cash by governor - debt or trust? duty to invest? no. | |
| dye - bribes from suppliers - bought worse and expensive materials - 5k (1/2m now) - CT? no... has to give back debt, not investments. | |
| not any more though - lawyer takes bribes buys NZ bungalow - can claim investments | |
| ADMIN of estates - pawn broker - bro had no legal right to sell? no title? PR or T? If acting as T no title... sympathy - acting as T... pawned some time after death - suggests T.. | |
| minor daughter - married - husband administrator of F's estate - guarantee from sol. admin and trustee. ran off. you guaranteed! 'but as admin, not trustee' - no, sympathy, look ab | |
| benefit to estate as a whole even if some beneficiaries are worse off - less tax aid | |
| 'unclearly expressed express trusts' - 'confident she'll do the right thing by the children' if trust, use not the words but vague intention... | |
| completely constituted, property handed over, wording not finalised... | |
| General power - to appoint to anyone in the world... | |
| Hybrid, anyone in all the world but X | |
| 20 bens - T can pay out income in various shares - start to die... estate? Life tenant of whole fund is owner for tax... NONE pay tax. | |
| non-fiduciary power is absolutely discretioanry. | |
| fiduciary power - not bound to exercise but 'does not mean he can simply fold his hands and ignore it' - must from t to t consider whether or not to exercise' 'needs appreciation o | |
| fixed trust = list test | |
| Discretionary T - duty to distribute - 'must necessarily make a wider and more systematic survey than if his duty is expressed in terms of power to make grants' | |
| Russian - DT - claimed he was beneficiary under a power, - trustees said buzz off - may/may not be object of power, not of discretionary trust. | |
| DT - what right to know? Can trustees simply ignore certain bens? entitled to see letter of wishes? not in general - yes if leaked anyway... | |
| The three certainties | |
| of I - if not, no trust. 'in full confidence she will do what is right by the children. | |
| 'to be at her dispoal in any way she may think best, benefit of her and her fmaily' | |
| certainty of subject - shares - DID create a binding trust, cerrtain | |
| follows H v M - no need for certainty if intangibles... Neuberger J | |
| not certain - most think this one is correct... | |
| Of objects... 'old friends' - under power, it is the IS test... | |
| fiduciary power - the test is is/is not | |
| DT - Is/is not + admin workabiliuy | |
| fund for inhabitants West Yorks = DT, is/is not + administrative workability picked up... | |
| the next - DT valid, Stamp - 'relatives' = NOK. redefines... clear and certain. cheats. Sachs & Megaw - variations of is test... reasonable number ARE relatives... | |
| conceptual vs. evidential uncertainty - the latter a problem. rabbi obiter... | |
| condition - is test - paintings... if coming forward for one thing each = conditional gift. '10k each to friends' = gift... amount fixed, people come forward, = is test | |
| capriciousness, related to power... capricious if 'inhabitants of greater london' arbitrary - obiter | |
| wanted to get around 'old friends' - so... narrow conceptually certain class... then give trustees power to add beneficiaries. wide clear power. anyone in world except...' | |
| PERPETUITIES - 3 rules - Pre 1964, any interest had to come into being (vest) life +21, 1964, wait and see/optional 80 year, now, 110. | |
| Perpetuitis DOES apply to charitable trusts subject to limited exception in... | |
| Rule 2 - non-charitable purpose... ends not beginnings. relates to tying up of capital beyond perpetuity perod. Probably 21 years... | |
| this one, you cannot accumulate for more than 21 years until 1925, now... 2009 Act, 125 years! | |
| Charities - 4 main differences. | |
| certainty of objects - exclusively charitable - 'such objects of benevolence' too wide | |
| but this act said you could not by will devise land to charity on death... so if land in Morice probably allowed to pass then fail under act | |
| 'such charitable institutions or other charitable... OR benevolent objects...' No... not certain | |
| gifts over - exception to rule cannot begin in the future - CAN have gift over charity to another any time in future - income payable to one charity until future event, then proper | |
| when charitable? Lord Macnaghten - poverty - education - religion - other purposes beneficial to community | |
| Poverty is not destitution, here, 'widows and orphans of bank officials' | |
| student unions ARE charitable | |
| died 1941, promote NHS - died after set up - judge at date of WILL - then political | |
| not charitable 'to foist upon the public a mass of useless junk' | |
| of child by holy spirit she thought, women superior, bedford centre of universe - foolish but charity - but void under mortmain (land failed) gifts ok... 2000 had £3m! | |
| group unclear what they believed in, temple closed - looked religious, it was. | |
| contemplative orders not charitable - lack public benefit - must go out | |
| a gift to all the people in a particular place WOULD be charitable | |
| fee-charging charity STILL charitable - hospital | |
| amateur sport, school pre 2006 problem - but schoolmaster, estate to school, squash and athletics, ok linked to edu. healthy mind healthy body | |
| human rights, must not campaign for change in law... OK - refugee from nazis, gift to Wilton Park | |
| Rec Charities 1958 Act passed because of this... gift to methodists in west ham - social not religious - or for whole area... what about WI? not pure rec... interest of social welf | |
| PUBLIC benefit... scholarship fund - children of employees and ex... many people. 'not a section of the public' 'personal nexus' like family - not charitable | |
| poverty trust for poor ex-employees - educational had failed, this one is allowed. | |
| the metal box case - scholarship fund - appeared to be for children in general but 75% MB employee kids - doesn't stop charity - just breach of trust | |
| some v.limited circumstances, poverty trust valid for family members... pre 2006, need little pub ben for poverty trusts... | |
| CY PRES - die and leave property to charity no longer exists | |
| leave money to charity which then closes down | |
| property to rector of named seminary - defunct - student moved to other sem. failed - specific seminary | |
| 1 - charity endowed (lasts forever) must be here somewhere - amalgamated - where did funds go? left money to Mrs B's charity in Rother... | |
| 2 - original charity a TRUST can argue its purposes live on - 'equity will not allow trust to fail for lack of trustee' - hold money for purpose of original trust. | |
| series of gifts to charities - hospitals - local hosp disappeared - several gifts fail but one succeeds under the heaing because it is a trust charity - another fails because a com | |
| 3. General charitable intention. such charitable purposes 'as i do intend to name herefater' then doesn't - general charitable | |
| fails, clergyman leaves property to set up village school, not enough money to set up school - general charitable no - very clear about details | |
| 4 - charities which never existed - 'version of general charitable intent' - how do you know? sounds like it | |
| SUBSEQUENT - if almost impossible... another charity, until 1960 needed completely impractical... | |
| Charities Act 1993 s.13, (was 1960) radical change - can move cypres if purposes become 'inconvenient' - this case, slavery abolished, impossible... | |
| Disaster appeals - remainder? Victims of mudslide... mass excess, money moved to shift coal, wrong. | |
| not charitable, wrong wording...e xcess on resulting trust to donors. couldn't find so sat in court for 50+ years... cadets on a coach | |
| good - solicitor arranged 2 funds - c + non-c - if you give to C, left over cy=pres, if not, families. makes it clear. | |
| NON-CHARITABLE purpose trusts... in general, no. 'every (non-c) trust must have a definite object. there must be somebody in whose favour the court can decree performance' | |
| exceptions. i. tombs ii. pets. iii. religious observances. iv. foxhunting - trustee has right to spend money on object but cannot be maid to. gift over if doesn't spend... lax with | |
| can, no perpetuity, 4 already, cannot outlive 21 years... | |
| 'integrity of newspapers and good internaitonal understanding' no perpetuity issue, 21 years... no. will not extend list. | |
| 'useful memorial to myself' - not charitable, would have been if just to local authority | |
| PC in Oz - monks and nuns, wording not clear if charitable - possible to give NC - should fail? Legislation - if either can give all to charitable and save it | |
| anti-viv - Brightman classifies ways of giving to club or society. i. gift to members at death. ii. present and future members on themselves. iii. purpose of club NO. iv. contract- | |
| ';enforceable by employees against trustees' sports ground - trustees to allow employees to use and could allow others too at discretion 21 years ok. YES - how? not charitable. not | |
| VARIATION - if ntot all sui juris... used to be a dispute between two adults and pretend compromise for change | |
| VTA 1958 - court consent for those who CANNOT. here court doesn't mind very contrived tax shcme | |
| there are other benefits than money - the kids would have to grow up in Jersey | |
| UK trust moved to canada to avoid tax - ok - the above doesn't mean no to this | |
| Investment powers - s.32 TA 1925 - remember - nothing to stop your own variation clause in the instrument... this rare non tax - varying s.32 - paying over to ben early... 100% rat | |
| Benefit? Some lose a bit, others gain a lot. Not good - communal benefit not enough | |
| but ok, if you take a risk, probably better off, might be a bit worse, then that might be ok... aunty amelia lives to 100 worse... | |
| NOT for benefit of Sandra's unborns that trust be tinkered with for cousins to take instead... | |
| mentally disabled very rich old woman - 98% tax - for her benefit? give some to grandchildren? yes - any rational selfish person would | |
| vary 'catholic' forfeiture - consent? yes - benefit - freedom of religion. spouse. (and family dissension?) | |
| Jude MAY approve - discretion? settlor wouldn't have wanted it? protective for housekeeper - appointed herself as successor - husband and kids variation... (d - don't need benefit | |
| goes the other way - settlor, daughter for life, grandson. hippy & doesn't like son in law - definite benefit of GG - takea it all if Dad dies under 40 but v.unlikely... Steed was | |
| can you have a resettlement? technically no, Re T - but just don't call it that and you'll be ok | |
| RESULTING - failure to dispose of equitable interest - 'equity abhors a beneficial vacuum' - Diplock LJ | |
| FORMALITIES - this bit requies instruments to be made in writing... doesn't affect resulting/implied/constructive ts | |
| s.1(b) doesn't need be IN writing - just evidenced... proved in writing... evidence may be produced years after - bankrupt man executes deed after bankruptcy to prove he's held pro | |
| 1(c) - must BE in writing - equitable disposition... trust to avoid estate duty - documentation that passes interest 2%. empty trust. no stamp. transfer to bare trust. then to othe | |
| private company shares - mother then son... S v V rearrange - 50/50 for tax - rearrangement a disposition? need writing? specific p poss with private c - get constructive t on hand | |
| CA wont' follow Oughtred - lack of writing but cannot go back on it... | |
| POWERS + DUTIES of T investment - private settlement - 1922 - carless trustee bank do not realise wide powers... don't bother.. trustee sued - lost - have not proved loss. danger t | |
| wanted to restrict - not competing with coal - no - must bring in best income.. could argue pension? bear contributors in mind? | |
| but - should invest to promote christian faith? no. but already policy of omission... legitimate | |
| BREACH of T - i. personal liability ii. in rem... try and seize property. T owned hotel - unauthorised - shoudl have sold and bought govt stock - 20 years later, less. compensate. | |
| if 2 breaches, cannot set-off profit, but if one, you can. brutal here... shares not g-stock, breach, remandermen complain - paid life-t too much, court found 2 breaches one up one | |
| T of family trust - shares in private company, speculative constructive, breach, two ventures, one up one down, ONE breach -generous set off allowed | |
| trustee who breaches NOT liable to compensate for any loss that would have been suffered anyway even without breach | |
| s.62 of 1925 Trustee Act - if B asked for breach his life itnerest compensate - also may be protected in settlement from gross negligence | |
| trustee must NOT profit - must not purchass - self-dealing rule, even by public auction | |
| BUT - here VERY rare exception, executor son of farmer - wanted to buy it, resigned as executor as soon as he saw a problem and bid - resigned and knew nothing no one else knew ok | |
| T must not put himself in position where has conflict of interest - T hold market lease - won't re-lease - as individuals? no. B get it on constructive trust. T should walk away | |
| army sergeant - smuggling in Cairo - used uniform - disgorge profit - fiduciary | |
| private company - majority shareholders - would have actually been more dishonest to say acting separately from trust - reorganised, profit up. didn't divulge to trustees? one gaga | |
| FP - 'cant simply fold his hands and ignore it'... need to apply mind to the size of the problem | |
| contingent interest does not come under VTA - only people with mere expectation... no to interest | |
| Re settlement is not ok if substratum of turst moved, BUT you can 'effectuate the purpose of the trust by other ways' | |
| CA won't follow AK v Reid | |
| can only use equity's tracing if you have a claim in equity... | |
| change of position defence to common law money had and received - playboy club | |
| also ministerial receipt - agent, link in the chain | |
| you can have an in rem at common law but not if mixed | |
| equity - straight swap easy | |
| unconscionability, BCCI v Akindele - what is that?! no.. i. trust. ii. breach. iii. assistance. iv. stranger must have been dishonest. objective and subjective. | |
| in knowing receipt, knowing and receipt... you need actual knowledge, willfully shut eyes or fail to make right enquiries... | |
| you can go for a SHARE rather than a charge over a mixed fund, Re Tilley suggested Re Hallett wrong confirmed in sad suicide case | |
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