Equity & Trusts Introduction Flashcards

What is 'proprietary estoppel'?

Answer: An equitable doctrine that prevents a landowner from asserting their strict legal rights where they made a representation relied on by another who acted to their detriment

Proprietary estoppel arises where: (1) the landowner made an assurance or representation about land rights, (2) the claimant relied on it, and (3) the claimant acted to their detriment. The court satisfies the equity by the minimum necessary to do justice (Thorner v Major [2009]).

What is the 'rule in Saunders v Vautier [1841]'?

Answer: Adult beneficiaries who are together absolutely entitled to the trust fund may collectively bring the trust to an end and direct the trustees to transfer the assets to them

The rule in Saunders v Vautier allows all beneficiaries, if they are of full legal capacity and together hold the entire beneficial interest, to collectively end the trust and direct the trustee to transfer the legal title to them or as they direct.

What are the duties of a trustee?

Answer: To act in the best interests of the beneficiaries, invest prudently, act unanimously, avoid conflicts of interest, and not profit from the trust

Trustees have numerous duties including: acting in the best interests of all beneficiaries, investing with the standard of care of a prudent investor (Trustee Act 2000), acting unanimously, not profiting from their position (the no-profit and no-conflict rules), and maintaining accounts.

What is the 'beneficiary principle' in trusts?

Answer: A private express trust must have ascertainable beneficiaries who can enforce the trust; purpose trusts are generally void

The beneficiary principle (Morice v Bishop of Durham [1804]) requires that there must be someone who can enforce a private trust. Pure purpose trusts (with no beneficiaries) are generally void, with limited exceptions.

What is a 'charitable trust' and what are the four heads of charity under the Charities Act 2011?

Answer: A trust for charitable purposes under s.3 Charities Act 2011: relief of poverty, advancement of education, advancement of religion, and other beneficial purposes

Under s.3 Charities Act 2011, charitable purposes include: prevention/relief of poverty, advancement of education, advancement of religion, advancement of health, advancement of citizenship, and several other categories. To be charitable, the purpose must be for the public benefit.

What is 'advancement of education' as a charitable purpose?

Answer: Purposes that advance education, including formal schooling, research, and the development of the arts, provided there is genuine educational value and public benefit

Advancement of education as a charitable purpose (s.3(1)(b) Charities Act 2011) covers formal education, research (if of educational value and publishable), museums, libraries, and the arts. The purpose must be genuinely educational and provide public benefit.