EQUITY AND TRUST LAW

Equity and trust Law

Equity and trust Law

Referring to the scenario depicted in the case Misss Bell should be advised that this essay will explain the maxim 'equity will not perfect an imperfect gift' and consider situations that suggest that this maxim is not a wholly accurate statement in current English law. In order to do so, the term paper will interpret the procedure and rationale of the maxim before considering positions in which it is held not to be applicable. The direct that equity will not perfect an imperfect gift is a particular application of the more general principle that equity will not aid a volunteer. A volunteer is somebody who has not provided concern for certain thing of value. This maxim is applicable to gifts as these are gratuitous transfers of house from the initial proprietor (offeror) to another (offeree) who supplies nothing in return. As this is an unequal cut-rate, equity will not enforce the gift if the offeror has a change of heart or is else prevented from accomplishing the transfer of property.

An agreement to give a gift is not a binding placement because of its one-sided environment so the offeree cannot invoke equity to entire the gift as there is no obligation upon the offeror to respect the pledge thus no inequity that desires to be remedied if the offeror reneges upon the agreement. In Milroy v. Lord, 1862 the court recognised three situations whereby equity would recognise a gift: firstly, an outright transfer of legal title to the offeree; secondly, an outright transfer to trustees to hold on trust for a beneficiary and, finally, a self-declared trust (which must satisfy the requirements of formality and certainty). For a gift to exist, Turner LJ stated that: To render a voluntary settlement effectual, the settlor must have done everything which, according to the nature of the property comprised in the settlement, was necessary in order to transfer the property and render the settlement binding upon him.

In other phrases, the regulation will only identify a gift if the offeror has complied with all the lawful requirements required to move property. If the house that is the subject matter of the gift is clear-cut, it can be moved easily by rendering it into the possession of the offeree. However, more convoluted presents of land and house that lacks a personal occurrence will not be moved without the completion of formalities. This means, for example, that gifts of land should be moved by conveyance, equitable concerns may only be moved in composing and shares need the culmination of an instrument of move. (Hayton, DJ 2001 Pp. 36)

If the offeror has set in shift assesses to transfer the house in inquiry but has failed to complete the necessary formalities, either because he has died or because events have intervened in some way to avert their completion, the property becomes the subject of an improperly constituted trust. The inquiry then arises as to whether it is equitable ...