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Law Equity and Trust Case study help (URGENT)

Hey guys I'm doing an oral exam where I play a trainee solicitor and I'm having a discussion with the client. I need help in which areas I need to discuss and what are potentially the controversial areas. I think the area is CONSTITUTION AND FORMALITIES OF A TRUST but are there areas I need to discuss before this? How would I structure what I would say (what order would I start with)

Here is the case study:

To: Trainee
From: Principal
Client: Logan Roy
Date: Today

I would be grateful if you would research a case for me. Logan Roy, of Succession House, Apple Street, Derby, DE3 1YL, has approached the firm to seek advice on how to best transfer his holiday home, Waystar Manor, to his trusted friend Marsha. Logan is keen to avoid informing the land registry of the transfer until the latest possible moment. Logan wants to know what his options are, and which is the option you recommend.

Please be prepared to present your research on how you would advise Mr Roy as to the ‘best’ approach for achieving his goals. You should also be prepared to answer questions relating to that research when we meet. Finally, you may also want to consider any additional questions/queries/requests for further information that you want to ask Mr Roy. Many thanks.
(edited 2 years ago)
Original post by A$AP Chadi
Hey guys I'm doing an oral exam where I play a trainee solicitor and I'm having a discussion with the client. I need help in which areas I need to discuss and what are potentially the controversial areas. I think the area is CONSTITUTION AND FORMALITIES OF A TRUST but are there areas I need to discuss before this? How would I structure what I would say (what order would I start with)

Here is the case study:

To: Trainee
From: Principal
Client: Logan Roy
Date: Today

I would be grateful if you would research a case for me. Logan Roy, of Succession House, Apple Street, Derby, DE3 1YL, has approached the firm to seek advice on how to best transfer his holiday home, Waystar Manor, to his trusted friend Marsha. Logan is keen to avoid informing the land registry of the transfer until the latest possible moment. Logan wants to know what his options are, and which is the option you recommend.

Please be prepared to present your research on how you would advise Mr Roy as to the ‘best’ approach for achieving his goals. You should also be prepared to answer questions relating to that research when we meet. Finally, you may also want to consider any additional questions/queries/requests for further information that you want to ask Mr Roy. Many thanks.

His options are option 1). an outright gift by transferring the legal title to Marsha or option 2). Declare a trust over the property with himself as trustee and Marsha the beneficiary.

I would recommend option 2. The reason for this is that the client wants to avoid informing the Land Registry until the last possible moment. Option 1 will require the client to execute a deed of transfer. However, in order for the transfer of the legal title to be completed, the deed must be sent to the land registry as it is a 'registrable disposition' (LRA 2002) and the transfer f legal title is not completed until Marsha is registered as the new registered proprietor. This applies whether title to the land is registered or unregistered.

Option 2 is not a registerable disposition of the property and so does not require the land registry to complete the transaction. If the client declares a trust over the property, with himself as a trustee, there is no need to transfer title ('constitute the trust'). In order to make the trust enforceable he must comply with the statutory requirements of the Law of Property Act 1925, s.53(1)(b). His declaration of trust must be evidenced in writing. So he should declare the trust writing and he must sign it. I would recommend that he places this document with the title deeds (if he has any) to the property. By doing this he will give Marsha the beneficial ownership without involving the land registry.

There is a 3rd option which is to appointment himself and another person as trustee. Although he should transfer the property into their joint names, it has the advantage of giving Marsha a beneficial interest in the property and the court would 'constitute' the trust if Mr Roy was unable to himself (e.g. if the dies or become bankrupt ) based on the decision in Paragani v Choithram. This would also be the case if he executes a deed of transfer and gives it to Marsha. However I would not recommend either of these options as it may involve litigation if the beneficiaries of Mr Roy's will or his creditors try to challenge the 'gift' of the property.

To conclude, Option 2 is easy to achieve and does not involve the Land Registry.

I would want to ask Mr Roy why he doesn't want to involve the Land Registry at this stage. If he doesn't wants Marsha's ownership in the property to be available publicly, then a trust would be the best way of achieving this. However, it does mean that he has duties and responsibilities as a trustee which should be explained to him. The way to avoid this is making an outright gift of the property but this will require involving the Land Registry. Overall, it seems an odd requirement and so Mr Roy should be asked what his reasons are in order to best advise the most appropriate method of achieving his gift to Marsha..

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