Equity and Trusts

Text book - Equity & Trusts, by Davies and Farran, 4th Edition 2025,Hall & Stott

Assessment:

• In person exam

• Exam notice released towards the end
  of November/ early December - confirming topic for Part A and excluding certain topics for revision for Parts B and C

• Open Book??

3 parts -

• A: 10 Multiple Choice Questions (20%)

• B: One problem from a choice of two (40%)

• C: One essay from a choice of two (40%)

Equitable Maxims (General Principles and Rules)

• Equity will not suffer a wrong to be without a remedy

• He who comes to equity must come with clean hands Douglas v Hello 2001

What is a Trust?

• The relationship which arises whenever a person called the trustee is compelled in Equity to hold property for the benefit of someone called the beneficiary

What is a Trustee?

• The legal owner of the property subject to the equitable rights of the beneficiary and the duties of trusteeship

What is a Beneficiary?

• The beneficial or equitable owner of the property, mostly waiting to receive their beneficial interest

• If a breach of trust occurs the Beneficiary can hold the trustee personally liable for loss caused, and may enforce proprietary rights via tracing

What is Meant by Self-Declaration?

• Where the settlor and the trustee are the same person

What is the Appointment of 3rd Party Trustee?

• Where the settlor and the trustee are different people e.g. the settlor may instruct a lawyer or legal firm to act as their trustee

What are Gifts in Equity and Trusts?

• An absolute gift, doner to done, sometimes with a condition precedent typically in wills

Creation of Express Trusts

What is an Express Trust?

• Where somebody has done something to make the trust come into existence e.g. written, orally etc

What are the 4 requirements for the Creation of Express Trusts?

• Capacity to make a trust (over 18, mental capacity etc), 3 certainties (intention, subject matter, and objects), compliance with legal formalities, constitution of the trust