The Student Room Group

Equity Law

I'm currently writing an essay for an equity scenario about creation of trusts, and I'm a little unsure of this:

Ben and Charlie have also been contacted by a friend of Abigail’s, Edwina. Abigail and Edwina had been working together on the conversion of derelict outbuildings (owned by Abigail) in the grounds of Chepstow House. They are being turned into a number of luxury holiday cottages. Edwina has produced a letter (whose authenticity is not disputed) written to her by Abigail a few months ago which says “…in view of all the work you have done, the cottages are yours as much as mine. I will get them put in both our names.” Unfortunately, Abigail had not got round to doing so before she died.*

I'm not really sure what this would be? My initial thoughts were intention (is the letter sufficient? - Yes), constitution (was the trust properly constituted? - Possibly, if settlor has done everything in her power to constitute the trust) and formalities (land registry etc).

However, I'm now wondering if there's anything about survivorship? If the intention was to put both names on the property, would it still work as a trust after death?

I'm a little confused. Any guidance would be much appreciated :smile:
What does the "(Land Registry)" bit mean? You don't need to do anything at the Land Registry to create a trust of land as far as I know (a trust can [and in some cases, must] be entered as a restriction on the register but whether it is or not does not affect its validity). The only formality to create an express of trust of land is that in s 53(1)(b) LPA 1925.

If you think this is an express declaration of trust by Abigail then constitution doesn't come into it. Constitution would be relevant if she was passing legal title to someone else to act as trustee: "Fred to hold on trust for me and Edwina". As she already holds legal title she doesn't need to constitute anything.
Reply 2
Original post by Forum User
What does the "(Land Registry)" bit mean? You don't need to do anything at the Land Registry to create a trust of land as far as I know (a trust can [and in some cases, must] be entered as a restriction on the register but whether it is or not does not affect its validity). The only formality to create an express of trust of land is that in s 53(1)(b) LPA 1925.

If you think this is an express declaration of trust by Abigail then constitution doesn't come into it. Constitution would be relevant if she was passing legal title to someone else to act as trustee: "Fred to hold on trust for me and Edwina". As she already holds legal title she doesn't need to constitute anything.


Thanks for your response, it's much appreciated!

I'm no longer sure what I meant by the Land Registry bit to be honest! I think I'd been driving myself mad for a while.

You've really helped to clear up the issues for me though! Its so clear now that I think about it. Thank you :biggrin:

Quick Reply

Latest