Trust tutorial Q1-4

"It seems to be as plain as can be that if all the objects are not ascertainable, then to distribute amongst the known objects is to take a narrower class than the settlor has directed and so to conflict with his intention' (Lord Guest (dissenting) in McPhail v Doulton (1970))


2. Explain the effect of the following separate transactions:

i. Alfred, the proprietor of a registered title to land, orally declares that he holds it on trust for Brian;

ii. Claudia, the proprietor of a registered title to land, completes a registered transfer form insructing the Chief Land Registrar to register David as proprietor. Before sending off the registration form, Claudia obtains David's agreement by telephone to hold the title on trust for Elizabeth. David is later registered as proprietor;

iii. Francis, the sold beneficiary of a bare trust of a title to a valuable painting, orally instructs his trustees to make a gift of the title to Graham, which they do by handing the painting to him;

iv. Harry, the sole beneficiary of a bare trust of shares, orally declares that he holds his rights on trust for James.


3. "It is high time the ghost of fraud was once and for all exercised from the doctrine of secret trusts".
Discuss

4. On the marriage of A to B in 2008, A's father, C, a widower, covenanted with D and E, that he (C) would transfer to them any rights valued at more than $10,000 he might receive to be held on the following trusts, namely, successive life interests to A and B, remainder in equal shares to the issue of the marriage, but, failing issue, to A's brother, F, absolutely.

In 2010, C acquired a painting under the will of a distant relative. The painting was valued at $250,000, but C failed to convey it to D and E. By his will drawn up in 2011, C left the painting to his cousin G absolutely.

Advise F as to his position regarding the painting. Would your answer differ if he could secure the co-operation of D and E in enforcing the covenant?