Equity and Trusts Assignment Sample

Added on - Dec 2019

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EQUITY AND TRUSTS
A Deed of Trust can be characterized as a legal agreement, which in essence isformulated by the legal owner of the property. Generally formation of trust is allowed to beeither in oral or written form. However, in relation to trust for land, Section 53 of the PropertyAct 1925 mandates the trust to be evidenced in a written format. In order to form a valid trust acertain intention to form a trust on the trustees shall be compulsorily present, in respect to aspecific property and the extent of interest conferred on the beneficiary. Through the medium ofa deed, in case of trusts for assignment of interests in land the legal owner shall primarily appointtrustees for the concerned property, and set out terms of trusts on the basis of which the trusteesshall hold the title in the property, and subsequently transfer the same in the name of thebeneficiaries (Hough and et. al., 2010). A document shall not be considered as a deed if thedocument clearly reflects the intention of creation of the a trust or expresses itself as a deed.Moreover, to render a documents as a valid deed it shall mandatorily be signed by the parties,which are known as the settlor and the trustee. Further it shall be signed in presence of thewitnesses, and shall become effective only from the time it is delivered to the trustee.In accordance to the given facts, Lucy executed a deed of covenant with David andJones. The deed particularly assigned the ownership of land to Molly, for life, which is acquiredby Lucy after the deed is executed. The remaining of the property was to be assigned to Molly'shusband if he survives Molly. Then it also provided for the right of the issue which shall beconferred equally. The covenant further provided that in the event of failure of any issue, theproperty shall go to Jack. Apart from the land, the deed also provided for transfer of shareswhich was held by her in Pluto Leisure Ltd. to the trustees for in favour of her sisters. It isimportant to note that David and Jones have been named as the trustees to the settlement, as weelas executors of the will. Further the fact that Lucy fell out of the family and had change of mindin relation to the covenants of the will, shall not hold any relevance. However, her instructions tothe trustees to not honour the deed are required to be assessed.At this point of discussion the relevance of testamentary trust or will trust is required rtobe established. This kind of trust becomes functional at the time of death of the person whoforms the will, and is known as the testator. It may be formed in relation to one or moretestamentary trust, and can address any of the portion of the estate. The number of partiesinvolved in this type of testamentary trust can be divided into four parties – settlor, trustee,beneficiary and probate court (Revocable and Irrevocable Trusts,2016). Settlor is the person1
who creates the trust and grants it to persons as named in the will, while trustee is the person(s)who is assigned the duty to take care of execution of the will in a systematic manner. Generally,the name of the trustee is mentioned din the court, in other circumstances the probate court isempowered to appoint the trustee. Beneficiaries are the ones who are liable to receive theultimate benefits from the property, and lastly, the probate court is responsible to oversee themanner in which the trust is being handled by the trustee.The occasion of a will is required to be undertaken after the death of the settlor, and is inrelation to the estate so developed by the person in his lifetime. It can formed in various formssuch as to oversee some specific assets, a trustee may be appointed to further transfer the asset toto the beneficiary in accordance to certain circumstances and so on (Lafuente Sánchez, 2015). Inaccordance to the facts one of the primary issues which shall be dealt with is whether the willshall be considered as revoked or not. As evident from the circumstances Lucy made an oralcommunication to the trustees to not honour the will, however, there was no indication to theeffect of destroying the said deed or making a codicil to over power the same.Codicil can be termed as a testamentary document which is required to be implementedin the same manner as will (Peisah and Shulman, 2012). Law has enabled the codicils to amend,revoke or add covenants to the will, only in the case there exists a specific reference to thecurrently existing will or last modified will. This infers that a Will can be republished throughthe medium of a codicil, and in order to establish the relevance of a codicil in the court of law, aclear reference to the existing Will is a substantial enough. In order to revoke the Will, thecontent so mentioned in the codicil shall be similar enough to establish the relation between theWill and the codicil. It is an established fact that in the event a Will is not inclusive of arevocation clause, the Codicil shall operate in the form of testamentary instrument to revoke theWill. However, there are various other methods through which a Will can be revoked orterminated by the testator during his/her own lifetime. Some of the methods of revocation of aWill are through the medium of a codicil, declaration in writing, destruction, by marriage ordivorce (Termination of trusts—overview,2016).On analyzing the available options in light of the given circumstances it can be concludedthat the option of destruction of the old will, creation of a new will or a codicil and amending theexisting will shall be the available options. However, it is clear from the circumstances of thegiven scenario that Lucy has not exercised any of these options, and rather instructed the trustees2
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