《TRUSTS AND TRUSTEES CASES AND MATERIALS 1 FIFTH EDITION》

PART ONE. TRUSTS3

Chapter 1. The Nature of a Trust3

Ⅰ Introduction3

Ⅱ Definition5

Ⅲ Trusts and Occupational Pensions7

Ⅳ Distinctions10

A Bailment10

B Agency11

C Contract12

D Conditions and Charges23

E Interests Under a Will or Intestacy25

F Powers34

G Where the Crown is Trustee48

V Recognition of Trusts by Non-Trust States49

Chapter 2. The Requirements of a Trust52

Ⅰ Formalities52

A InterVivos52

B By Will62

Ⅱ Certainty63

A Certainty of Intention64

B Certainty of Subject Matter67

C Certainty of Objects70

D AbsenceofCertainties89

Ⅲ Special Problem Relating to Unincorporated Associations91

A General91

B Theoretical Basis of PropertyHolding92

Chapter 3. The Constitution of Trusts. Volunteers111

Ⅰ Transfer of the Trust Property to Trustees111

A Legal Interests112

B Equitable Interests116

C Act of ThirdParty Necessary toPerfectLegal Title116

Ⅱ Declaration of Self as Trustee120

Ⅲ Covenants to Settle124

A Unenforceable by Volunteers124

B Should Volunteers Be Able to Enforce?130

Ⅳ Trusts of Future Property134

Chapter 4. Testamentary Dispositions which Fail to comply with the Wills Act 1837142

Ⅰ Introduction142

Ⅱ Incorporation by Reference143

Ⅲ Facts of Independent Legal Significance145

Ⅳ Gifts to Trustees of an Existing Settlement146

Ⅴ Secret Trusts150

A Fully Secret Trusts150

B Half Secret Trusts157

C Tenants in Common and Joint Tenants165

D Theoretical Basis of Secret Trusts166

Chapter 5. Trusts and Creditors170

Ⅰ Introduction170

Ⅱ Protective Trusts170

A General170

B TrusteeAct 1925, s. 33171

C Forfeiture172

D TheEffect of Forfeiture176

Ⅲ Attempts to Deprive Creditors of the Settlor178

A Transactions Defrauding Creditors178

B Bankruptcy Provisions180

C Meaning of Undervalue182

Chapter 6. Resulting Trusts184

Ⅰ General184

Ⅱ Conveyance to Trustees185

A NoDeclaration of Trust185

B Where an Express Trust Fails193

C Incomplete Disposal of Beneficial Interest194

Ⅲ The Presumptions215

A Presumption of Resulting Trust215

B Presumption of Advancement218

Ⅳ Family Property230

Chapter 7. Constructive Trusts247

Ⅰ General247

Ⅱ Categories of Constructive Trusts249

A Unauthorised Profit by a Trustee orFiduciary249

B Strangers to the Trust. Trustees de Son Tort250

C Mutual Wills274

D The Vendor under a Contract for the Sale of Land287

E Acquisition of Property by Killing288

F Secret Trusts292

G Justice and Good Conscience292

Chapter 8. Non-Charitable Purpose Trusts306

Ⅰ General Principles306

Ⅱ Anomalous Cases of Purpose Trusts being Enforced309

Ⅲ The Requirement of Ascertainable Beneficiaries312

Ⅳ Trusts for Persons or Purposes319

Ⅴ Useless or Capricious Purposes324

Ⅵ Rule against Perpetuities326

Ⅶ How to achieve a Non-charitable Purpose328

A By Incorporation328

B By Legislation328

C Construe or Draft as a Power329

D Draft as a Gift to a Group of Persons, such as an Unincorporated Association, and Not for Purposes Only330

E Conveyancing Device330

PART TWO. CHARITIES335

Chapter 9. Charitable Trusts335

Ⅰ Introduction336

Ⅱ Definition of Charity339

A The Preamble to the Charitable Uses Act 1601339

B Criteria for Charitable Status342

Ⅲ The Four Heads of Charity345

A The Relief of Aged, Impotent and Poor People345

B The Advancement of Education363

C The Advancement of Religion394

D Other Purposes Beneficial to the Community408

Ⅳ The Trust Must Be Exclusively Charitable459

A And/Or Cases459

B Main and Subsidiary Objects461

C Severance463

D Limited Reform464

Ⅴ Charitable Purposes Overseas464

Chapter 10. Cy-Près467

Ⅰ General467

Ⅱ Initial Failure468

A Width of CharitableIntent468

B Defunct or Non-Existent Charity471

C Continuation of Charity in AnotherForm473

D Unincorporated and Incorporated Charities475

E Charity by Association478

Ⅲ Subsequent Failure480

Ⅳ Impossibility and Impracticability482

A Before Charities Act 1960482

B WideningofCy-PrèsJurisdiction. CharitiesAct 1993486

C Charity Collections495

D Small Charities497

Chapter 11. The Administration of Charities500

Ⅰ General500

Ⅱ The Authorities501

A The Charity Commissioners501

B The Official Custodian for Charities502

C The Visitor502

Ⅲ The Register503

A The Register503

B Effect of Registration507

C Examples of Charities on the Register. Modem Developments508

D Charity Commissioners'Decisions512

Ⅳ Co-ordination of Charitable and State Welfare Activities515

Ⅴ Scheme Making Powers517

Ⅵ Provision of Advice520

Ⅶ Investment521

A ExtendedPowers of Investment521

B Common Investment and Deposit Funds523

Ⅷ Dealings with Charity Property524

A Power to Authorise Dealings524

B Restrictions on Dispositions525

Ⅸ Ex Gratia Payments527

Ⅹ Accounts, Returns and Reports529

Ⅺ Inquiries532

Ⅻ Trustees534

A Number534

B Acting by Majority534

C Appointment535

D Retirement536

E Removal and Suspension536

Ⅲ Land Held by Charitable Trustees is Settled Land538

PART THREE. TRUSTS AND TAXES543

Chapter 12. Introduction543

Ⅰ General543

Ⅱ Tax Avoidance545

Ⅲ Statutory Construction549

Chapter 13. Income Tax551

Ⅰ Taxable Income551

Ⅱ Rates of Tax552

Ⅲ Trusts552

A Trustees552

B Beneficiaries554

C Anti-Avoidance Provisions554

Chapter 14. Capital Gains Tax558

Ⅰ Chargeable Assets558

Ⅱ Chargeable Gains559

Ⅲ Disposal559

Ⅳ Death560

Ⅴ Alterations of Dispositions Taking Effect on Death560

Ⅵ Settlements560

A Disposal by Settlor561

B Disposal by Trustees561

C Disposal by Beneficiaries565

D Attribution of Gains of Overseas Trusts to Beneficiaries565

Ⅶ Hold-over Relief566

Chapter 15. Inheritance Tax569

Ⅰ Introduction570

Ⅱ Lifetime Transfers570

A Disposition570

B Estate571

C Loss in Value of Estate571

D Grossing-up571

E Computation572

F Exempt Transfers572

G Business Property and Agricultural Property Relief573

H Potentially Exempt Transfers (PETS)574

I Gifts with Reservation of Benefit (GROBS)577

Ⅲ Transfers on Death581

Ⅳ Settled Property581

A What is an Interest in Possession ?582

B Settled Property in Which Someone is Beneficially Entitled to an Interest in Possession590

C Settled Property in Which There is No Interest in Possession591

D Favoured Trusts597

E Trusts Within Two Years of Death606

PART FOUR. TRUSTEES611

Chapter 16. General Principles Relating to Trustees611

Ⅰ Duties and Discretions611

A Paid and Unpaid Trustees612

B Trustee Exemption Clauses613

C Pension Trustees614

Ⅱ Appointment615

A Appointment by Donee of Power to Appoint615

B Appointment by the Court624

Ⅲ Retirement629

Ⅳ Removal630

Ⅴ Particular Trustees635

A Judicial Trustees635

B The Public Trustee636

C Custodian Trustees641

D Trustees of Charitable Trusts645

E Trust Corporations646

Ⅵ Control of Trustees646

Ⅶ Power of Decision650

Ⅷ Termination of Trust at the Instance of the Beneficiaries.Rule in Saunders v Vautier653

Chapter 17. Duties of Trustees656

Ⅰ Duty on Becoming Trustee656

Ⅱ Duty to Invest661

A Introductory661

B Express Power of Investment662

C Statutory Power: Trustee Investments Act 1961663

D Selecting Investments676

E Trustees Holding Controlling Interest in a Company688

F Enlargement of Investment Powers by the Court690

G Mortgages of Land696

H Purchase of Land706

I Pension Trustees706

J Law Reform708

Ⅲ Duty to Distribute710

A Release on Completion710

B Advertisement for Claimants711

C Setting Aside a Fund to Meet Claims in Respect of Rents and Covenants712

D Benjamin Order713

E PersonalIndemnity713

F Payments by Personal Representatives to Infants713

G Application to the Court714

H Payment into Court716

Ⅳ Duty to Act Impartially between Life Tenant and Remainderman717

A GeneralDuty718

B The Rule in Howe v Lord Dartmouth721

C Reversionary Interests725

D The Rule in Allhusen v Whittell727

E Leaseholds727

F Law Reform729

Ⅴ Duty in Respect of Accounts andAudit731

Ⅵ Duty to Provide Information. Trust Documents732

Chapter 18. Powers of Trustees737

Ⅰ General737

Ⅱ Power of Sale738

Ⅲ Power to Give Receipts741

Ⅳ Power to Compound Liabilities and to Settle Claims741

Ⅴ Power to Insure742

Ⅵ Power in Connection with Reversionary Interests744

Ⅶ Power to Delegate745

A Trustee Act 1925745

B Law Reform757

C Enduring Powers of Attorney Act 1985759

D Pension Funds760

Ⅷ Power of Maintenance762

A The Statutory Power762

B Contrary Intention763

C Intermediate Income764

D Tax Considerations768

Ⅸ Power of Advancement771

A The Statutory Power771

B Advancement or Benefit772

C Application of the Money779

D Effect of Inflation779

Chapter 19. Variation of Trusts781

Ⅰ Introduction781

Ⅱ Trustee Act 1925, s. 57782

Ⅲ Settled Land Act 1925, s. 64784

Ⅳ Trustee Act 1925, s. 53786

Ⅴ Matrimonial Causes Act 1973, s. 24787

Ⅵ Mental Health Act 1983, s. 96789

Ⅶ Variation of Trusts Act 1958789

A Section 1789

B Persons on Whose Behalf Approval May be Given790

C How a Variation Takes Effect794

D Fraud on aPower803

E Principles Applicable to the Exercise of the Discretion804

Chapter 20. Fiduciary Position of Trustees815

Ⅰ General815

Ⅱ Payments to a Trustee816

A Reimbursement of Expenses816

B Remuneration816

C A uthorisation by the Court in Special Cases817

D RemunerationforLitigation Work by Solicitor-Trustees822

E Law Reform822

Ⅲ Purchase of Trust Property822

A Self-dealing and Fair-dealing Rules823

B Purchase of Trust Property. Self-dealing824

C Purchase from Beneficiary. Fair-dealing828

D Law Reform828

Ⅳ Incidental Profits829

A Trustees829

B OtherFiduciaries836

C Services to Charities859

Chapter 21. Breach of Trust861

Ⅰ Personal Liability to the Beneficiaries861

A Measure of Liability862

B Liability Inter Se874

C Protection of Trustees876

Ⅱ Proprietary Remedies891

A Tracing at Common Law891

B Tracing in Equity896

C Law Reform922

Index924