Equity and trust law essays
Answer: English law has, for a long time relied upon a judicial understanding of what charity is by looking at which activities previous judges have accepted as meriting the description of charitable and She also made a Will six months before she died In an express private trust, objects relate to human beneficiaries rather than to a particular purpose.
Indeed, he felt that in many cases, the settlor himself would not intend on equal division amongst many beneficiaries as the trust property would then become so thinly disbursed, it would essentially render the trust worthless.
These three certainties were most notably set out by Lord Langdale in Knight v Knight where it became recognised that a trust will only be binding where they were all satisfied. Page 2 of 11 Thus, it can be seen that the impact on the law regarding the certainty of objects is very much dependent on the type of trust in question.
Such a purchaser was sometimes known simply as 'Equity's Darling' — one who has found favour in the eyes of equity" Kevin Gray Elements of Land Law Assess the accuracy of the above statement.
Certainty of Objects — An Introduction In addition to constitution of trusts and compliance with requisite formalities, there are three fundamental obligations which are essential in creating an express private trust. Thus due to the binding nature of trusts and the enforceable obligations they have on trustees, it is crucial to clearly identify the trust objects. Similarly, if the defining concept is unclear, leaving it to the trustee to define will not necessarily save the trust from becoming invalidated. Here, the trust instrument sets out the individual interest that each beneficiary has in the trust property, and in order for the property to be distributed correctly, the trustee must be able to create a complete list of the entitled beneficiaries. Fixed Trusts — The Complete List Test A stricter approach usually applies to fixed trusts where a greater degree of certainty is required than for discretionary trusts. Yet, despite this, the courts have continued to adopt an equally positive and sensible approach in their operation. Page 5 of 11 interpretation seems difficult to reconcile with as it is clearly not what the House of Lords intended to achieve by setting the test in the first place. An illustration of how the courts enforced the complete list test was demonstrated in Re Eden. Indeed, he felt that in many cases, the settlor himself would not intend on equal division amongst many beneficiaries as the trust property would then become so thinly disbursed, it would essentially render the trust worthless. The court takes a very strict approach in applying this — if a trustee is unable to draw a complete list of objects at the time of distribution, the complete list test will not be satisfied and the trust will be invalidated. Page 2 of 11 Thus, it can be seen that the impact on the law regarding the certainty of objects is very much dependent on the type of trust in question. Answer: Since the establishment of a court of conscience in Chancery during the late 19th century the distinction between legal and equitable proprietary interests are as follows. Initially, there was no distinction between fixed trusts and 17 Ibid, In order to have a valid trust in law as it has been This duty of loyalty applies to prevent the fiduciary abusing his position.
Initially, there was no distinction between fixed trusts and 17 Ibid, How have the courts applied the exclusive loyalty rule to the position of trustees? Page 4 of 11 discretionary trusts and so the complete list test was used for both.
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