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SHELLS NUT SHELLS
SHELLS NUT SHELLS Equity & Trusts
Titles in the Nutshell Series
Titles in the Nutcase Series
Commercial Law Company Law Constitutional Cons titutional and Admin Administrativ istrative e Law Consumer Law Contract Law Criminal Law Employment Law English Legal System Environmental Law Equity and Trusts European Union Law Evidence Family Law Human Rights Law Intellectual Property Law International Law Land Law Medical Law Tort
Constitutional Cons titutional and Admini Administrativ strative e Law Contract Law Criminal Law Employment Law Equity and Trusts European Union Law Evidence Family Law Human Rights Law International Law Land Law Medical Law Tort
SHELLS NUT SHELLS Equity & Trusts
Titles in the Nutshell Series
Titles in the Nutcase Series
Commercial Law Company Law Constitutional Cons titutional and Admin Administrativ istrative e Law Consumer Law Contract Law Criminal Law Employment Law English Legal System Environmental Law Equity and Trusts European Union Law Evidence Family Law Human Rights Law Intellectual Property Law International Law Land Law Medical Law Tort
Constitutional Cons titutional and Admini Administrativ strative e Law Contract Law Criminal Law Employment Law Equity and Trusts European Union Law Evidence Family Law Human Rights Law International Law Land Law Medical Law Tort
SHELLS NUT SHELLS Equity & Trusts NINTH EDITION
MICHAEL
by HALEY , Solicitor, Professor of Property Law Keele University Based on original text by Angela Sydenham
First Edition – 1987 Reprinted 1988 Reprinted 1990 Second Edition – 1991 Third Edition – 1994 Reprinted 1996 Fourth Edition – 1997 Fifth Edition – 2000 Reprinted 2002 Reprinted 2003 Sixth Edition – 2004 Seventh Edition – 2007 Eighth Edition – 2010 Published in 2013 by Sweet & Maxwell, 100 Avenue Road, London NW3 3PF Part of Thomson Reuters (Professional) UK Limited (Registered in England & Wales, Company No 1679046. Registered Office and address for service: Aldgate House, 33 Aldgate High Street, London EC3N 1DL *For further information on our products and services, visit www.sweetandmaxwell.co.uk
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Contents
Using the book Table of Cases Table of Statutes
ix
xiii xxxvii
..........................................................................................................................................................................................................................................................................................................
1.
An Introduction to Equity Introduction Equity’s Impact The Maxims of Equity Specific Performance Injunctions Revision Checklist Question and Answer
1 1 2 4 8 10 15 15
..........................................................................................................................................................................................................................................................................................................
2.
The Trust Introduction Classification of Trusts Revision Checklist Question and Answer
18 18 21 26 26
..........................................................................................................................................................................................................................................................................................................
3.
The Three Certainties Introduction Certainty of Intention Certainty of Subject Matter Certainty of Objects Revision Checklist Question and Answer
28 28 28 32 35 39 40
..........................................................................................................................................................................................................................................................................................................
4.
Constitution of Trusts Introduction Self-Declaration as Trustee Transfer to Trustees When will Equity Assist a Volunteer Revision Checklist Question and Answer
42 42 42 43 44 52 52
v
..........................................................................................................................................................................................................................................................................................................
vi
5.
C o n t e n t s
Formalities Introduction Why Formalities Trusts Created by Will Lifetime Trust of Land Dealing with an Existing Trust Interest Revision Checklist Question and Answer
54 54 54 54 55 56 61 61
..........................................................................................................................................................................................................................................................................................................
6.
Secret Trusts Introduction The Problem? Why Secret Trusts? Two Types of Secret Trust Justification for Secret Trusts Fraud The Creation of a Secret Trust Predeceasing the Testator Revision Checklist Question and Answer
63 63 63 63 64 65 65 67 71 71 72
..........................................................................................................................................................................................................................................................................................................
7.
The Statutory Avoidance of Trusts Introduction Transactions Defrauding Creditors Special Bankruptcy Provisions Family Claims Revision Checklist Question and Answer
74 74 74 77 79 81 81
..........................................................................................................................................................................................................................................................................................................
8.
Resulting Trusts Introduction Failed Trusts The Apparent Gift Cases Rebutting the Presumption Revision Checklist Question and Answer
82 82 83 88 90 93 93
..........................................................................................................................................................................................................................................................................................................
9.
Constructive Trusts Introduction Categories Mutual Wills: A Summary of the Rules And the Family Home?
95 95 96 100 101
Revision Checklist Question and Answer
105 105
..........................................................................................................................................................................................................................................................................................................
10.
Non-Charitable Purpose Trusts Introduction The Beneficiary Principle Trusts for Persons or for Purposes? Unincorporated Associations Revision Checklist Question and Answer
108 108 108 111 112 114 114
..........................................................................................................................................................................................................................................................................................................
11.
Charitable Trusts Introduction The 13 Heads of Charity Public Benefit Exclusively Charitable? Advantages of Charitable Status The Key Heads of Charity Relief of Poverty Advancement of Education Advancement of Religion The Remaining Statutory Descriptions of Charity Revision Checklist Question and Answer
116 116 116 117 117 119 120 120 121 124 125 128 128
..........................................................................................................................................................................................................................................................................................................
12.
The Cy-Pre`s Doctrine Introduction Inherent Jurisdiction Statutory Jurisdiction Revision Checklist Question and Answer
131 131 131 135 137 138
..........................................................................................................................................................................................................................................................................................................
13.
Appointment, Retirement and Removal of Trustees Introduction Capacity and Number Appointment of Trustees Terminating Trusteeship Revision Checklist Question and Answer
139 139 139 140 145 147 147
C o n t e n t s
..........................................................................................................................................................................................................................................................................................................
14.
Trustee’s Duties Introduction
149 149
vii
Duties on Appointment General Fiduciary Duties Duty to Keep Accounts and Provide Information Investment Protection of Trustees: Exoneration Clauses Revision Checklist Question and Answer
viii C o n t e n t s
149 152 157 157 160 161 161
..........................................................................................................................................................................................................................................................................................................
15.
Powers of Maintenance, Advancement and Delegation Introduction Examples Maintenance Advancement Delegation Revision Checklist Question and Answer
164 164 164 164 167 171 174 174
..........................................................................................................................................................................................................................................................................................................
16.
Variation of Trusts Introduction An Express Power The Rule in Saunders v Vautier Inherent Jurisdiction Statutory Jurisdiction The Variation of Trusts Act 1958 Revision Checklist Question and Answer
177 177 177 177 179 180 182 184 185
..........................................................................................................................................................................................................................................................................................................
17.
Breach of Trust and Associated Remedies Introduction Liability for Breach Personal Claims Against a Trustee Proprietary Claims and Tracing Knowing Receipt and Dishonest Assistance Revision Checklist Question and Answer
187 187 187 191 193 199 202 202
..........................................................................................................................................................................................................................................................................................................
18.
Index
Handy Hints Preparing for and Taking Examinations Writing Essays
205 205 205 207
Using this Book
DETAILED TABLE OF CONTENTS
atute Question and Answer
for easy navigation.
...............................................................................................................................
9
Termination of Employment Question and Answer
...................................................................................................................................................
10
Wrongful Dismissal Question and Answer
....................................................................................................................................................
11
Unfair Dismissal Can the Applicant Claim? Can a Dismissal be Identifie The Reason for the Dismi The Fairness of the D uestion and
TABLES OF CASES AND LEGISLATION for easy reference.
.R. 416, EAT ] A.C. 488
80, 82, 83, 104
MacDonald; Pearce v Mayfield g Body [2003] I.C.R. 937, HL
46
6] I.R.L.R. 327, EAT
91
bber Industries [1967] V.R. 37
25
s Ltd [1996] I.R.L.R. 119, EAT
29, 93
lin eV v Botel (C-360/90) [1992] 23, ECJ
Trade Union Ac 1945
Law Reform (Contribut
1957
Occupiers Liability Act (5
1970
Equal Pay Act (c.41) s.1 32, 33, 36 (2)(a) 39 (c) 39 (1) 26 (3) 34, 36, 39 (6)(a) 15 (13) 26
1974
Health and Safety at Wo s.2 72 (3) 72
37
.R. 744; [1982] I.R.L.R. 307, 5) 119 S.J. 575,
15, 3
ix
x U s i n g t h i s b o o k
CHAPTER INTRODUCTIONS
to outline the key concepts covered and condense complex and important information.
An Introducti
INTRODUCTION
This book considers the doctrines a by the branch of law known as “e the concept of the trust. In parti duction to equity and trusts e development of En ”
DEFINITION CHECKPOINTS, EXPLANATION OF KEY CASES
to highlight important information.
As mentioned, there a half secret trust. It is cruci situations, different rules app has been created, it is necessary
A Fully Secret Trust DEFINITION CHECKPOINT
are the other provisio contract of employment.
A fully secret trust operates in ci face of the will that the legatee No indication of a trust or its te itself.
key case
KEY CASE
Carmichael v National Power plc [1 Mrs Carmichael worked as a guide for required’’ basis, showing groups of vi tion. She worked some hours most w wore a company uniform, was som vehicle, and enjoyed many of the question for the court to determi ‘‘umbrella’’ or ‘‘global’’ emplo she worked and
DIAGRAMS, FLOWCHARTS AND OTHER DIAGRAMMATIC REPRESENTATION to clarify
and condense complex and important information and breakup the text.
Figure 1 Court and Tribunal System
House of Lords
COURT OF APPEAL (CIVIL DIVISION)
CONTRACT OF EMPLOYMENT
MPLOYMENT APPEAL TRIBUNAL
WORK RULES contractual terms mselves, but via lied term of dience etc.)
PRODUCERS OF COLLECTI
me tran ade a successful claim un
Revision Checklist You should now know and understand: t
t
the relevant provisions of the Inso the differences between a tran preference;
t
the special bankruptcy provisi
t
the family provisions.
END OF CHAPTER REVISION CHECKLISTS outlining what
you should know and understand. U s i n g t h i s b o o k
xi
