7. Proving Declarations Of Trust And Effecting Dispositions Of A Beneficiary’S Interest Under A Trust

Front 1

7. Proving declarations of trust and effecting dispositions of a beneficiary’s interest under a trust/identify the difference between substantive requirements of a declaration of trust and procedural rules relating to its proof

Back 1

1. The substantive requirements form the content of the trust declaration.

2. The rules relating to its proof regard whether or not the declaration was in writing

Front 2

7. Proving declarations of trust and effecting dispositions of a beneficiary’s interest under a trust/describe the origin and nature of these procedural rules

Back 2

These procedural rules derive from the Statute of Frauds 1677

Front 3

7. Proving declarations of trust and effecting dispositions of a beneficiary’s interest under a trust/identify the substantive rules relating to declaration of trusts

Back 3

1. s. 53(1)(b) LPA requires declarations of trust dealing with land to be made in writing

2. There is no requirement as to the time of the evidence so post trust written declarations are valid.

3. A parole declaration of trust relating to land is valid but cannot be proved in court.

4. Resulting, implied or constructive trusts are exempt (s. 53 (2), matrimonial home cases)

5. Parole evidence may be admitted to prevent fraud (Rochefoucauld v Boustead [1897] 1 Ch 96

Front 4

7. Proving declarations of trust and effecting dispositions of a beneficiary’s interest under a trust/identify the substantive rules relating to disposition of interests under a trust

Back 4

1. s. 53 (1) (c) LPA requires dispositions of trusts to be in writing

2. This excludes surrender of a beneficial interest and disclaimer of beneficial interest.

3. The reason for this rule is to chart the movement of equitable interest and to prevent fraud.

4. The courts have held that this rule is not limited to trusts of land despite the wording of LPA.