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Valid Express Trusts (CONSTITUTION: Must meet the 3C's and be…
Valid Express Trusts
CONSTITUTION: Must meet the 3C's and be completely constituted. May be created by TF, declaration or direction: Comm of State Revenue v Lunn & Kym PL
Declarations of trust
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Declarations of trusts are dispositions 'for the purpose of legislation that deals with reqs for writing': Controller of Stamps (Vic) v Howard-Smith
Equiv legislative provision satisfied by a combination of documetns capable of being read together even if some came into existence after the declaration of the trust: Secretary, Dept of Social Security v James; Pasce v Boensch
Direction
B of existing trust directs T to hold interest on trust for another, constitutes a disposition of a subsisting Eq interest, writing req: Grey v Inland Revenue Comm
Transfer
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Post mortem: only by valid will: Succession Act s 10 including writing, signed, witnessed x 2, read s 10(5)- (13).
If the trust is created by voluntary TF, the fule in Milroy v Lord applies
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Volunteers
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Agreement to create a trust for consideration, contract enforceable in Eq by decree of specific performance
Fletcher v Fletcher: T refused to enforce covenant set out in deed. Settlor's son who was due to become a beneficiary successfully sought recovery.
Eq will not frustrate a beneficiary: Cannon v Hartley, followed by Re Cook's Settlement Trust, challenged Re Pryce,
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