Literature Quiz / Equity Law - Secret & Private Purpose Trusts

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Can you name the cases for Equity Law - Secret Trusts, Purpose Trusts & UAs?

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TopicCase
A person relying on the existence of a Secret Trust bears the burden of proof - balance of probabilities
Requirements of a Secret Trust: Intention, Communication & Acceptance
She ‘knows what she has to do’ too vague (Intention)
‘knows his wishes… giving what’s appropriate’, too vague (Intention)
FST: Communication must take place before the death of the testator, before or after signing the will
FST: The testator must communicate the existence of the trust
The terms of the trust must also be communicated (failure = resulting trust)
The Subject Matter (property) of the trust must be communicated
Terms by sealed envelope will suffice if the trustee accepts them knowingly
If trustees can be seen as Joint Tenants, all will be bound (exception to general rule)
The testator must Reasonably believe the trustee accepts the trust, and relies on this (executing a will, leaving it unrevoked)
Making no will at all can demonstrate reliance
Post-will communication would ‘involve a power to change a testamentary disposition by an unexecuted codicil and would violate s9 Wills Act’ – per Lord Wright MR
‘to such persons and in such proportions as shall be stated by me in sealed letter’ - failed for future referencing
CA: a FST will fail if the secret trustee predeceases the testator or disclaims the gift
HL: a trustee to a HST will not be allowed to defeat the testator’s purpose by renouncing the legacy – Trusts will not be allowed to fail for want of a trustee
‘Equity will not permit a statute to be used as an instrument of fraud’
Dehors the Will Theory
Land: An Oral FST of a bungalow was allowed, but s53(1)(b) was not considered in the case
Land: A HST of land was not enforceable without written evidence, but this was before establishing HST
Land: A constructive trust would be imposed to compel a trustee to fulfil his agreement
Land: Equity intervenes to prevent unconscionable conduct of a trustee resiling from his agreement
Predeceasing beneficiaries - The estate of a beneficiary can claim the interest under dehors the will theory
TopicCase
s15 Wills Act will not apply to a HST as it is clear from the will that the trustee does not benefit (Likely FST too)
PPT - Beneficiary Principle: 'There must be someone in whose favour the court can decree'
'Towards the promotion & furthering of fox hunting' (probably void)
‘My favourite black mare’ - allowed
‘Maintenance of [my] horses and hounds’
Leaving money to animals generally, will be construed as charitable
For the erection or maintenance of a monument to someone - Must be of a Funerary nature - Each need perpetuity
For the maintenance of a particular monument in a graveyard
Leaving money to the entire graveyard will be construed as charitable
If the mass is said/sung in private (giving no public benefit) is must be a Private Purpose Trust
If the mass is said/sung in the main body f the church & public are welcome = charitable
‘some useful memorial to myself’ was void for uncertainty of object (purpose)
Perpetuity - lives in being does not extend to animal lives
Though expressed as a purpose, a trust for the benefit of an individual or individuals will be allowed
Closes the list for Purpose Trusts, defining them as ‘Merely occasions when Homer has nodded…’ per Harman LJ
Unincorporated Associations are identified as a sub-species of Joint Tenancies (survivorship principle)
Rare - Dispositions to a UA may be treated as an outright gift to the club members
Contract Holding Theory - A gift to the members of an UA, subject to the club rules
Gifts to UAs who are subject to External control will fail
a gift subject to a limited degree of external control will not be fatal to CTH
UAs can be inward looking (look after member interests)
UAs can be outward looking (look to a cause/purpose)

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