Equity and Trusts - Gifts
2012/13 Law 3240 and 5760
Equity and Trusts
Seminar 3
The Three Certainties: Certainty of Intention, Certainty of Subject Matter, and Introduction to Certainty of Objects
Essential Reading
Martin, Hanbury & Martin: Modern Equity (19th ed., Sweet & Maxwell, 2012) 97-107; or
Watt, Trusts and Equity (5th ed., Oxford University Press, 2012), 77-92; or
Wilson, Todd and Wilson’s Textbook on Trusts (10th ed. Oxford University Press, 2011), 53-72
AND
Harrison v Gibson [2006] 1 All ER 858
Supplementary Reading
Todd and Watt Cases and Materials on Equity and Trusts (8th ed., 2011) Ch. 3
S. Worthington (1999) ‘Sorting out ownership interests in a bulk: gifts, sales and trusts’, Journal of Business Law, 2
Blue = textbook reading
Guidance Notes
1. Introduction
Gratuitous disposition of property in favour of another = usually an absolute gift. But can sometimes be conditional gift/gift subject to a charge. Conditional – ie gift of a house to A on condition that B live there rent free for life. Subject to charge – gift of house to P, subject to P paying £10,000 to E. Also can make gift on trust ( eg transfer of property ‘to Terry on trust for Ben’. Terry = trustee; Ben = beneficiary. T = legal owner, B the equitable/beneficial owner. Note: not every express trust is created gratuitously – in the example, the settler may have been under a contractual obligation to create trust for Ben.
When settler creates a trust – free to define obligations of the trustees and entitlement of the beneficiaries as he sees fit, subject only to limitations imposed for reasons of public policy. He can provide that trustees should be bound to care for only part of the trust fund. If he intends that trustees should speculate recklessly with the fund with a view of doubling it or losing it all within a 2yr period, he may so provide and ‘no beneficiary can complain if the money is lost’.
This great freedom can
Equity and Trusts
Seminar 3
The Three Certainties: Certainty of Intention, Certainty of Subject Matter, and Introduction to Certainty of Objects
Essential Reading
Martin, Hanbury & Martin: Modern Equity (19th ed., Sweet & Maxwell, 2012) 97-107; or
Watt, Trusts and Equity (5th ed., Oxford University Press, 2012), 77-92; or
Wilson, Todd and Wilson’s Textbook on Trusts (10th ed. Oxford University Press, 2011), 53-72
AND
Harrison v Gibson [2006] 1 All ER 858
Supplementary Reading
Todd and Watt Cases and Materials on Equity and Trusts (8th ed., 2011) Ch. 3
S. Worthington (1999) ‘Sorting out ownership interests in a bulk: gifts, sales and trusts’, Journal of Business Law, 2
Blue = textbook reading
Guidance Notes
1. Introduction
Gratuitous disposition of property in favour of another = usually an absolute gift. But can sometimes be conditional gift/gift subject to a charge. Conditional – ie gift of a house to A on condition that B live there rent free for life. Subject to charge – gift of house to P, subject to P paying £10,000 to E. Also can make gift on trust ( eg transfer of property ‘to Terry on trust for Ben’. Terry = trustee; Ben = beneficiary. T = legal owner, B the equitable/beneficial owner. Note: not every express trust is created gratuitously – in the example, the settler may have been under a contractual obligation to create trust for Ben.
When settler creates a trust – free to define obligations of the trustees and entitlement of the beneficiaries as he sees fit, subject only to limitations imposed for reasons of public policy. He can provide that trustees should be bound to care for only part of the trust fund. If he intends that trustees should speculate recklessly with the fund with a view of doubling it or losing it all within a 2yr period, he may so provide and ‘no beneficiary can complain if the money is lost’.
This great freedom can