Equity and trusts Master Case Study Example | Topics and Well Written Essays - 1000 words

Equity and trusts Master - Case Study Example However it is important the trust instrument must allow the property to be identified clearly. (The K-Zone - Certainty of Subject Matter) The transfer of five thousand shares in Echo Ltd to be held in Trust will be considered as valid trust property as has been decided in the case of Re Rose (1952)4. The fact that the transfer of the shares was not registered does not affect the creation of the trust covering the shares, as the legal presumption is that even when the settler has not done enough to effect a legal transfer the act of creating a trust including the shares as the trust property will constitute a trust. The transfer of some prime agricultural land from the farm which Andy will inherit under his father's will does not constitute a trust. This is due to the fact that the title to the property in the passes to Andy only on the death of his father when the will takes effect. As the subject matter of the trust is not certain there is no creation of any trust in respect of the agricultural land. This is the case of a 'future property' that the settler expects to obtain. Any attempt to create a trust of a future property will be considered as void as the setter does not have the right to transfer the title to the trustee (The K-Zone - Future Property) This issue is well settled in Re Ellenborough 19035. 3. Transfer of house property to Pat - On her marriage to Jonathan In this case when Andy creates a trust of the house property in favour of Pat on the condition that she marries Jonathan it gives rise to a case that a court of equity would compel Andy to constitute the Trust if he reneges on his commitment (The K-Zone - Marriage Consideration). However there are no specific case laws to prove that marriage consideration would still constitute a valid purpose for the creation of a trust for a modern court. But the existence of marriage consideration is attracted by the basic implication of 'unregistered conveyancing' which may require the transfer of title to Pat. 4. Transfer to Richard one of the house properties In Milroy v Lord 18626 there are three processes that must be carried out to recognize the transfer of any property as a valid gift. They are: An outright transfer of legal title to the beneficiary An outright transfer to trustees to hold on trust for the beneficiary or a self declaration trust The principle to be considered here is that the above three circumstances are mutually exclusive and the courts will not consider an imperfect gift as a trust or vice versa. The principle established in the case of Re Rose 1952 though has been made specifically applicable to transfer of shares can equally be