Constructive trusts, illegal purpose and locus poenitentiae

Analyses the Family Division decision in Q v Q on the competing claims of a father and son to beneficial ownership of a house in which the father sought to on a secret agreement entered into with his sons when transferring the property into their joint names, intended to subvert the inheritance tax rules on lifetime gifts by retaining the right to have the property transferred back to him, and the son relied on a later agreement with his brother to transfer the house into his sole name, in reliance on which he and his wife had acted to their detriment by paying for its upkeep and renovation.

Private purpose trusts: a reform proposal

Argues for the introduction of statutory reform to enable valid private purpose trusts to be created by those wishing to make testamentary gifts for non-charitable purposes, with no human beneficiary. Examines the rationale employed in cases where the validity of a private purpose trust has been upheld despite the absence of a human beneficiary. Considers the approaches adopted by five offshore jurisdictions when introducing purpose trust legislation. Identifies key features to be included in any new purpose trust legislation introduced in the UK.

Resulting trusts, joint borrowers and beneficial share

Reviews case law illustrating the courts' approach to beneficial ownership of property purchased in joint name by means of a joint mortgage but without any declaration of beneficial interest, the resulting trust and joint beneficial interest presumptions. Contrast the approach adopted in cases where one party made no contribution to the mortgage payments with those where both parties made a contribution. Highlights the courts' treatment of the right to buy discount afforded tenant purchasers and property purchased as a commercial venture rather than a home.

Oral agreements: estoppel, constructive trusts and restitution

Analyses the House of Lords judgment in Cobbe v Yeoman's Row Management Ltd in relation to claims by the prospective purchaser under an oral agreement for sale of a block of flats based on proprietary estoppel, a constructive trust and common law restitution brought against the owner of the property who sought to resile from the agreement after the purchaser had, at considerable expense, obtained planning permission to redevelop the property in reliance on assurances given by the owner that if permission was granted the sale would be honoured.

Exploring the conditional performance of UK unit trusts

We evaluate the conditional performance of U.K. equity unit trusts using the approach of Lynch and Wachter (2007, 2008) relative to three conditional linear factor models. We find significant time variation in the conditional performance of some trust portfolios and individual trusts using the lag term spread as the information variable. The conditional performance of the trusts is countercyclical and larger trusts have more countercyclical performance than smaller trusts within certain investment sectors. These patterns in conditional trust performance cannot be fully explained by the underlying securities that the trusts hold.

Infrastructure, the crisis, and pension funds

Infrastructure investment has been an important element in the economic stimulus packages introduced to try and deal with the effects of the recession. It is reinforced by the need to develop sustainable energy sources, and by the development needs of countries in the south. Public sector finance – tax revenues and bonds – remain the main way of financing such investment. The use of PPP projects to finance and operate infrastructure services, and the development of infrastructure funds as a way of investing in them, are both dangerous and unnecessary.

Chattels: I have bought it all for you

Outlines the ways by which personal property can be acquired through the gift of chattels, referring to case law including the Court of Appeal rulings in Re Cole (A Bankrupt) and Re Kirkland, and through the declaration of trust, with reference to the Chancery Division ruling in Rowe v Prance. Compares this to the use of constructive trusts or proprietary estoppel to secure assets and considers the need to prove detrimental reliance.

Joint ownership and beneficial entitlement: Stack v Dowden.

Explores the issue of the share of beneficial entitlement to the family home where the legal title is jointly owned, but where there has not been an express declaration of a beneficial joint tenancy. Discusses the House of Lords judgment in Stack v Dowden which addressed this point. Explains how the judges moved the focus away from the court imposing its own sense of fairness on the parties or imputing an intention based on the circumstances to one where the concentration will be on the parties' relevant conduct. Outlines three other points of interest referred to in the judgment: (1) whether an indirect financial contribution could support a constructive trust; (2) whether proprietary estoppel and common intention constructive trusts should be assimilated; and (3) whether a mortgage liability is equivalent to a financial contribution.

Expectations and promises

Discusses the Chancery Division judgment in Thorner v Curtis on a claim by an unpaid farm worker, who was led to expect that he would inherit the farm. Examines whether proprietary estoppel could be proved even if the deceased landowner made no express promise. Reviews case law on proprietary estoppel.

Confidentiality or disclosure?

Considers the discretion of the trustees to disclose the settlor's wishes to the beneficiaries of a family discretionary trust. Discusses the confidentiality principle relating to family discretionary trusts and whether a settlor's wish letter falls within the scope of that principle. Sets out the guidance of the court in Breakspear v Ackland for trustees faced with a request for disclosure from a beneficiary.

A just claim?

Discusses the law relating to the payment of occupation rent to a co-owner by the party remaining in the property after a relationship breakdown both under the Trusts of Land and Appointment of Trustees Act 1996 and where the Act is not applicable. Considers, with reference to the Chancery Division decision in Re Barcham, whether a trustee in bankruptcy acting on behalf of the non-occupying person can claim an occupation rent under the court's equitable jurisdiction.

Showing interest

Comments on the Chancery Division judgment in Jones v Kernott on the beneficial interests of former cohabiting partners in their family home. Considers whether the partners must have intended to vary their shares when the man stopped paying the mortgage, bought a house in his own name and went to live there. Discusses whether the court could take into account what was considered fair between the partners based on the whole course of dealing, including non-payment of maintenance for children.

The legal pendulum swings back

Comments on the Court of Appeal judgment in Abou-Rahmah v Abacha on liability for dishonest assistance to a breach of trust. Discusses whether an objective standard should apply to determine whether the accessory acted dishonestly. Reviews case law, examining whether the combined test proposed in the House of Lords judgment in Twinsectra Ltd v Yardley is still good law.

Cohabitation and conflict

Considers some of the potential legal difficulties that can occur on the breakdown of a cohabiting couple's relationship. Covers disputes surrounding the ownership of the family home and the use of constructive trusts following the House of Lords decision in Lloyds Bank Plc v Rosset. Outlines the recommendations of the Law Commission in its report Cohabitation: the Financial Consequences of Relationship Breakdown. [From Legal Journals Index]