Routledge

About the Lawcards Series

Trusts Lawcards Checklist

Chapter 1: Equity, the nature of a trust and types of trust

  • What is meant by the term ‘Equity’?
  • Why did Equity develop as a system of law separate to the Common Law?
  • Were the systems of Common Law and Equity fused by the Judicature Acts?
  • What is understood by the term ‘Trust’?
  • Distinguish between an express trust, resulting trust and constructive trust
  • What is a discretionary trust?
  • What is a protective trust?
  • Distinguish between a bare power and a trust
  • Identify six maxims of Equity

Chapter 2: Capacity and the three certainties

  • Does a minor have capacity to create a valid trust?
  • What are the three certainties?
  • Why are the three certainties needed?
  • What are precatory words?
  • What is the test of certainty of objects in a fixed trust?
  • What is the test of certainty of objects in a discretionary trust?
  • What is meant by conceptual uncertainty, evidential uncertainty and administrative unworkability?
  • What is the effect when a trust fails for uncertainty of subject matter?  
  • What is the effect when a trust fails for uncertainty of objects?

Chapter 3: Statutory formalities. Secret trusts

  • What formalities are required under s 53(1)(b) Law of Property Act 1925 when a trust of land is declared?
  • What formalities are required under s 53(1)(c) LPA when there is a disposition of a subsisting equitable interest?
  • Give examples of dispositions of subsisting equitable interests
  • What is the effect of non-compliance with s 53(1)(b) LPA?
  • What is the effect of non-compliance with s 53(1)(c) LPA?
  • What types of trust are exempt under s 53(2) LPA?
  • Secret trusts
  • What are the differences between a fully secret trust and a half secret trust?
  • When do these trusts arise?
  • What is the theoretical basis for upholding secret trusts?
  • What are the rules of communication for a fully secret trust?
  • How do these rules compare with those for a half secret trust?
  • What is the rule in Re Stead ?
  • Can a secret trustee take as secret beneficiary?
  • Can a secret beneficiary witness the will?
  • What happens when a fully secret trust fails? 
  • What happens when a half secret trust fails?

Chapter 4: Completely and incompletely constituted trusts

  • How is a trust constituted?
  • Contrast Milroy v Lord with Re Rose
  • What is meant by the maxim ‘Equity will not assist a volunteer’?
  • Can a beneficiary enforce an incompletely constituted trust?
  • What remedies exist for a beneficiary of an incompletely constituted trust (a) in equity (b) at Common Law and (c) under Statute?
  • What are the three exceptions to the maxim that Equity will not perfect an imperfect gift?
  • What is meant by the rule in Strong v Bird?
  • What are the requirements for a donatio mortis causa?

Chapter 5: Resulting trusts

  • Distinguish between an express trust and resulting trust
  • What is the theoretical basis of resulting trusts?
  • What is a presumed resulting trust?
  • When does the presumption of advancement apply?
  • When does an automatic resulting trust arise?
  • What is the rule in Shephard v Cartwright?
  • Can evidence of illegal conduct be relied on to rebut a presumption?  
  • Distinguish between Tinsley v Milligan and Tribe v Tribe
  • What is a Quistclose trust?
  • What happens to a surplus left after the dissolution of an unincorporated association?

Chapter 6: Constructive trusts

  • How does a constructive trust arise?
  • Distinguish between a remedial and an institutional constructive trust 
  • Give three examples of the categories of traditional constructive trusts 
  • What is meant by a fiduciary?
  • When will a fiduciary be liable as constructive trustee?
  • When is a stranger liable as constructive trustee?
  • What is meant by ‘recipient liability’?
  • What is a mutual will?
  • When might it be relevant to know whether a secret trust is a constructive trust?

Chapter 7: Trusts of the family home

  • What is meant by ‘Equity follows the law’ in this context?
  • What must the non-legal owner, who claims she has a beneficial interest in the home, prove in order to establish:
    •   an express trust;
    •   a resulting trust;
    •   an express common intention constructive trust;
    •   an inferred common intention constructive trust?
  • How will her beneficial interest be quantified in each of the above cases?
  • What is meant by proprietary estoppel?
  • What remedies are available under proprietary estoppel?
  • Who may rely on s 37 of the Matrimonial Proceedings & Property Act 1970?
  • What is wrong with the current law regarding trusts of the family home?
  • What recommendations for reform have been made by the Law Commission? 

Chapter 8: Charitable trusts

  • What are the legal advantages of charitable status?
  • What are the fiscal advantages of charitable status?
  • Who enforces a charitable trust?
  • What are the three requirements for a valid charitable trust?
  • What are the thirteen heads of charitable purpose?
  • How has the public benefit requirement changed under the Charities Act 2006?
  • Explain the public benefit requirement in respect of the first three heads of charitable purpose
  • Explain what is meant by the requirement that a charitable trust must be exclusively charitable?
  • What is meant by the cy-pre`s doctrine?
  • What is meant by initial failure in respect of the cy-pre`s doctrine?
  • What is meant by subsequent failure in respect of the cy-pre`s doctrine?
  • How has statute extended the cy-pre`s doctrine?

Chapter 9: Non-charitable trusts. Trusts of imperfect obligation. Unincorporated associations

  • Why is a non-charitable purpose trust void?
  • What are the three exceptions?
  • What is meant by the rule against perpetuities?
  • What is the perpetuity period for a purpose trust?
  • Can charitable trusts be perpetual?
  • What is meant by the rule against remoteness of vesting?
  • What statutory perpetuity period has been recommended by the Law Commission?
  • What is the Denley principle?
  • How is an unincorporated association defined?
  • Why is there a problem when gifts are made to an unincorporated association?
  • How can a gift be made to an unincorporated association?
  • How is property held by an unincorporated association?
  • What happens to the property when an unincorporated association is dissolved?

Chapter 10: Trustees and the administration of trusts

  • How is an initial trustee appointed?
  • How are subsequent trustees appointed?
  • When may a trustee retire?
  • How is a trustee removed?
  • When may a trustee be remunerated?
  • What is meant by a trustee’s fiduciary duty?
  • What principles must be taken into account when a trustee makes investments?
  • What is meant by a power of maintenance?
  • When may the statutory power of maintenance be exercised?
  • When does an interest carry the intermediate income?
  • What is meant by a power of advancement?
  • When may a statutory power of advancement be exercised?
  • Describe the statutory power of delegation by a trustee
  • Variation ot Trusts
  • When may the court vary a trust under its inherent jurisdiction?
  • When may the court sanction a variation under the Variation Act 1958?
  • What is meant by ‘benefit’ in this context?
  • What weight is given to the settlor’s intention?

Chapter 11: Remedies for breach of trust

  • When does a breach of trust occur?
  • What is the liability of incoming and retired trustees?
  • What are the implications of joint liability of trustees?
  • What is the measure of a trustee’s liability for breach of trust?
  • What are the defences to an action for personal liability?
  • How are exemption clauses in the trust instrument treated?
  • When is a claim statute barred?
  • What is the distinction between tracing and following?
  • What conditions must be satisfied for equitable tracing?
  • Discuss tracing into unmixed funds
  • Explain tracing when the trust fund is mixed with the trustee’s funds  
  • Discuss tracing into two trust funds which have been mixed together
  • Can tracing take place when trust funds have been paid to an innocent volunteer?

Chapter 12: Equitable remedies

  • What is an injunction?
  • Compare a final injunction with an interim injunction
  • What is the difference between a mandatory injunction and a prohibitory injunction?
  • What is a quia timet injunction?
  • Describe the general principles in granting a perpetual injunction
  • What are the principles laid down in American Cyanamid?
  • When will a freezing order be granted?
  • What are the main characteristics of a search order?
  • Describe an order for specific performance
  • When will such an order not be granted?