This is an extract of our Formalities Of A Trust document, which we sell as part of our GDL Equity and Trusts Notes collection written by the top tier of Cambridge/Bpp/College Of Law students.
The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Equity and Trusts Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
FORMALITIES OF A TRUST
Valid declaration of trust creates a new interest.
Disposition of beneficial interest transfers an existing interest.
Three types of trust:
o Inter-vivos trust
Trust of Land
o May be declared informally (orally or by conduct)
o Recall Paul v Constance  - Cash in the bank account was used for bingo winnings of Claimant and her deceased partner. These had been shared. Conduct sufficient for trust.
o Must comply with Trusts of Land requirements.
Trusts created by will/testamentary trusts.
o Must be contained within a valid will (if the will is invalid all clauses are too).
o S.9 of the Wills Act 1837 (as amended by the
Administration of Justice Act 1982)
Will must be in writing
Will must be signed by the testator
Will must be attested by two witnesses (in the presence of the testator but not necessarily in the presence of each other).
Attest does not mean signed. May just write name
(Payne v Payne)
Lack of independence does not invalidate whole will, only invalidates the clauses relating to the non-independent person.
o Any amendments to the will must be made by declaring a new will or a codicil.
Trusts of Land
s.53(1)b of the Law of Property Act 1925 requires all trusts of land be evidenced in writing.
s.1 TOLATA: a trust of land is any trust which consists of or includes land.
Non-compliance with s53(1)(b) will render the declaration of trust unenforceable, rather than void.
This requirement is ad probationem not ad validate: writing is necessary for evidence purposes but not to validate the declaration of trust.
This means it is possible to declare the trust orally but later provide evidence of that declaration in signed writing.
o The requirement is often ignored as equity will not allow a statute to be used as an instrument of fraud.
Buy the full version of these notes or essay plans and more in our GDL Equity and Trusts Notes.