Key Case Law Summary in Trusts

These flashcards cover key cases and rules regarding trusts and the legal principles that govern their validity and constitution.

Beaney (1978)

A settlor must have high capacity (equivalent to making a will) for significant property dispositions.

Knight v Knight (1840)

Established the mandatory requirement of the Three Certainties for a trust to be valid.

Paul v Constance (1977)

Consistent conduct and verbal declarations can prove intention to create a trust.

Re Adams and Kensington Vestry (1884)

Precatory phrases like 'in full confidence' are insufficient to denote legal intent.

Palmer v Simmonds (1854)

The phrase 'the bulk of my estate' is too vague to satisfy certainty of property.

Re London Wine (1986)

Tangible goods must be specifically segregated and identifiable to form a valid trust.

Hunter v Moss (1994)

Segregation is not required for intangible, identical assets like company shares.

Re Golay (1965)

'Reasonable income' is valid because it can be determined objectively by the court.

IRC v Broadway Cottages (1955)

Fixed trusts require a complete list of all beneficiaries (the 'list test').

McPhail v Doulton (1971)

Discretionary trusts use the 'is or is not' test for identifying beneficiaries.

Milroy v Lord (1862)

Equity will not perfect an imperfect gift; the trust must be properly constituted.

Re Rose (1952)

A trust is constituted once the settlor has done everything in their power to transfer title.

Pennington v Waine (2002)

An exception where constitution is effective if it is unconscionable to deny the transfer.