Hey guys, I'm having a pre-seen exam next week in equity. I need to advice on distribution of the assets and in the below scenario I'm in opinion that it relates only to disposition however, my examinator included a topic of sub-trust in this exam and therefore I was wondering whether there are any chances of creating a sub-trust in this scenario?
I have concluded that because he has no more active duties to perform, and because of s.53(1)(c) Law of Property Act 1925 it will be ineffective disposition and it will be Tom, not Solene who will receive the car.
However, I was wondering whether maybe his physical delivery constructed a sub-trust, or anything else here indicating sub-trust.
In 2015 Jermy orally declared himself as trustee of a number of his assets, including Rolls-Royce Car in favour of his son, Tom.
A few months later, Tom, without informing his father, took the keys to the car from his father's house and handed them over to his girlfriend Solene, saying "The car is now yours to enjoy"
Have you got yours?