FORMALITIES

2003 4 parts
2004 4 parts
2006 Q5 Julia
2007/A Alfred
2008 Q1 Jeremy
2009 /B/Q7 Lional
2010/A/Q2 Alfred
2011/B/Q1 4 parts
2012/A/Q2 Adam(+)
2013/B/Q3 Cathy
2016/B/Q3 Barney(+)
2018/A/Q1 Lisa(+)
2019/B/Q1 Lucy(+)
2021/Oct/Q6 Xenon (+)
2022/A/Q5 Trebor
2022/OCT/Q2 Ang
2023 /B/ Q5 Toni & Neil ( +)

2023 /B/Q5

Toni held shares in Baker Ltd on trust for Delta. Delta wished to make the shares over to Eon and instructed Toni to
transfer title to the shares to Eon. Toni signed the transfer form and handed the form to Eon’s solicitor, Kevin, along
with the share certificate. Before Kevin was able to register the shares in Eon’s name, Toni was killed in a car
accident. Unaware of the accident, Eon declared a trust over the shares, which she believed were registered in her
name, in favour of Falco. Delta has now changed his mind. He has asked Toni’s personal representative, Ghia, to
transfer the shares to Neil absolutely. It also emerges that Toni held some shares in Street Ltd, also on trust for Delta.
Before Toni died, Delta had instructed him to transfer the legal title in the shares to Neil and this had been done.
Delta is now arguing that he is the owner of the shares in Street Ltd because he meant Neil only to have the shares in
Baker Ltd.

Advise Neil.

2022/Oct/Q2
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Ang’s trustees hold shares on trust for him absolutely. On 1 February, he telephones them and instructs them to
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hold the shares on trust for Bo. On 1 March, he telephones again saying that his previous instructions were a joke,
and that they are to transfer the shares beneficially to Chang. The trustees execute a transfer of the shares and put it
in the post addressed to Chang. Before it reaches Chang, Ang dies and it transpires that he has left the shares in his
will to Den.

Advise Bo,Chang and Den.

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Would it make any difference if Ang, on 25 February, had entered into an oral contract to sell the shares to Eric?

2022/A/Q5

Trebor is trustee of shares in Plonk Ltd and Broke Ltd, holding on trust for George. George wished to give the shares
in Plonk Ltd to Zupo and instructed Trebor to transfer title to the shares to Zupo. Trebor signed the transfer form and
handed the form to Zupo’s solicitor, Solo, along with the certificate of title to the shares.

George also tells Trebor to hold the shares in Broke Ltd on trust for Xerxes but a few days later, George argues with
Xerxes and instead agrees in writing to sell these shares to Yasmin. Before Solo was able to register the shares in
Plonk Ltd in Zupo’s name, George was killed in a car crash, leaving all his property to Sylvia. It also emerges that
George never transferred his interest in the shares in Broke Ltd to Yasmin, and now Xerxes and Sylvia are claiming
them.

Advise Sylvia.

2021/Oct/Q6

Xenon was the beneficiary of 10,000 shares in Protoplant plc. In May he told his trustee, Albert, by telephone that he
wanted Albert to hold the shares on trust for Yolanda, his girlfriend. However, in June, Xenon and Yolanda had an
argument, so Xenon rang up Albert and told Albert that he had changed his mind and, instead, that Albert should
ensure that Zoe, his niece, became the absolute owner of the shares. Albert was unsure about this, but eventually
completed a share transfer form made out to Zoe and posted it to Protoplant plc’s share Registrars. The form was
received by the Registrars, but the documents had been intercepted on route by Freddie, Albert’s business partner,
who had altered them so that he, Freddie, now appeared on the share register as owner of the shares.

In July, Xenon died, leaving all of his property by Will to his daughter, Constance. Constance is claiming ownership of
the shares, as is Yolanda and Zoe.

Discuss

2019/B/Q1

Lucy declared a trust in writing of 75 shares in a private company, with Ethel as sole trustee and Fred as sole
beneficiary. Lucy sent the declaration of trust to Ethel, along with a completed share transfer form, and the share
certificates. Ethel put the declaration, transfer form, and certificates in her wall safe.

Fred then orally agreed to sell his interest under the trust to Ralph for £50,000. Ralph orally declared that he held any
interest he received from Fred on trust fo Alice. Alice orally assigned her interest under this trust to Norton.

Discuss

2018/A/Q1

Lisa was a single mother of two daughter: Nana and Priya. Lisa was the registered owner of three houses in London :
Green Gables, Maroon Manor and Violet Villa. She transferred all three houses to Nina, who became the new
registered owner. Lisa asked Nina to hold Green Gables in trust for her (Lisa), to hold Maroon Manor in trust for
Priya, and to keep Violet Villa for herself ( Nina) as a gift.

Lisa dies unexpectedly two months later, According to her will her ex husband Sanjay is entitled to her entire estate.
Sanjay claims that he is entitled to all three houses because Nina is holding them in trust for Lisa’ estate. Nina seek
your advise .

Advise Nina
2016/B/Q3

Barney was an elderly single man who had been married and divorced twice.He arranged a meeting with his closest
friends, Lily, Marshall, Robin, and Ted,to discuss the creation of two trusts: (a) the ‘Victoria trust’ for the children and
grandchildren of his first marriage to Victoria and (b) the ‘Wendy trust’ for the children and grandchildren of his
second marriage to Wendy.

Lily and Marshall agreed to be the trustees of the Victoria trust. The sole trust asset was to be a pub, which was
owned by Barney in fee simple. Barney executed the form to transfer his registered title to that estate to Lily and
Marshall and handed the form to Lily.

Robin and Ted agreed to be the trustees of the Wendy trust. The trust assets were to consist of Barney’s shares in a
men’s clothing company. Barney said he would transfer those shares later. One week later, Robin called Barney to
say that she had changed her mind and did not want to be a trustee. Barney said, ‘Don’t worry, Ted and I will do it.’

Barney died two weeks later. Nothing further had been done to set up the trusts and nothing about them had been
written down. The transfer of the pub had not been submitted for registration.

Carl and Daphne have been appointed as the executors of Barney’s estate. They seek your advice about the validity
of the Victoria and Wendy trusts.

Advise Carl and Daphne

2013/B/Q3

Cathy and her brother, Sean, were the beneficiaries of a family trust in equal shares. The trust assets consisted off
(a) a fee simple estate ( which they called ‘the cottage’), (b) shares in a private company , and (c) and interest
bearing bank account . Sean wanted to buy Cathy’s interest in the trust . She orally agreed to sell her interest in the
company shares and the bank account to him for £100,000, but told him that she was keeping the cottage for the
benefit of Adam, who is the 5 year old son of her dearest friend, Marlene. Sean paid Cathy as agreed , but no
documents were ever signed .

Cathy wrote and signed the letter to Marlene , which contain the following sentence : “I’ve sold my interest in the
family trust to Sean , except for the cottage , which I am holding in trust for Adam “.

Cathy died recently , and under her will, her entire estate will go to several charities . What rights , if any , do Sean
and Adam have to Cathy’s interests in the family trust .

2012/B/Q2

Adam made a written declaration of trust of 50 shares in a privately held company, with Calvin as sole trustee and
Eve as sole beneficiary. Adam sent the declaration to Calvin ,along with a completed share transfer form and the
share certificate .Calvin put the declaration ,transfer form and certificate in the safety deposit box.

Later, Eve orally agreed to sell her interest under the trust to Troy for £25,000. Troy then orally declared that he held
any interest that he received from Eve on trust from Helen. Helen orally assigned her interest under this trust to
Sophie.

Discuss.

What difference if any, would it make if the shares were in a public company.
2011/B/Q2

Discuss the effect of the following separate transactions:

i. A orally contracts with B to sell him A‟s interest as beneficiary of a fixed trust. B pays A the purchase price, but
before A assigns the interest to B, A becomes insolvent;

ii. C, a beneficiary of a fixed trust of a fee simple title to land, orally directs his trustees to convey to him the fee
simple, which they do;

iii. D conveys his title to land to E. Before the conveyance, D orally instructs E to hold the title on trust for D;

iv. the trustees of a trust of shares orally inform F, a beneficiary of the trust, that they have exercised a power of
appointment vested in them to appoint the shares to G, thereby defeating F‟s interest under the trust.

2010/A/Q2

Alfred decides to set up a trust of his freehold title to some land for betty, with Collette as trustee. He completes a
registered land transfer form, which he sends to the Chief Land Registrar to register Collette as proprietor of Alfred’s
title. Alfred writes a letter to Collette to inform her of the forthcoming transfer, telling her that the title when received is
to be held on trust for Betty. On receipts of the letter, Collette telephones Alfred and accepts. Collette is registered as
proprietor, but several weeks later Alfred’s letter to Collette is destroyed in a fire. Alfred also instructs Edward and
Florence, who hold a title to a valuable painting on trust for Alfred, to make a gift of it to Betty. They do so by
delivering the painting to her. Finally, Alfred, who is also a beneficiary of a trust of shares, orally declares that he
holds his interest on trust for Betty.

Alfred has now died, leaving his entire estate to Penny. Advise Penny

2009/B/Q7

Lionel holds shares in Kybosh Ltd, a private company, on trust for Mark. Mark orally instructs Lionel to transfer the
Kybosh shares to Peter as a gift. After Mark does so, Peter orally contracts with Quentin to sell his interest in the
shares to him. Lionel also holds shares in Sundance Ltd, another private company, on trust for Nigel for life,
remainder to Oliver. Oliver orally contracts with Nigel to assign him his interest under the Sundance trust. Nigel then
orally declares himself trustee of that interest for Rachel. Finally, Oliver holds a fee simple title to Purpleacre, a farm.
Oliver procures the registration of Lionel as proprietor of his fee simple title to Purpleacre, having previously orally
instructed him to hold it on trust for Ursula.

Discuss.

2008/A/Q1

Jeremy is in a generous mood. He decides to set up a trust of the title to his house for Millicent . He completes a
registered land transfer form instructing the Chief Land Registrar to convey the title to Brian . He writes separately to
Brian to inform him of the instructed transfer , and telling him that the title is to be held on trust for Millicent when
received . Title is later transferred to Brian ; several weeks later the letter from Jeremy is unfortunately eaten by
Brian’s dog Bonzo. Jeremy also instructs Tim and Tom , who hold a title to a valuable painting for Jeremy on trust ,
to make a gift of it to Millicent . This they do by delivering the painting to her . Finally Jeremy orally instructs Karl and
Keith, who hold some shares for him on trust , to hold them instead for Millicent . He writes to Millicent to tell her of
this , but she carelessly loses the letter .

Jeremy has now died , leaving his entire estate to Penny . Advise her .
2007 (Zone A )

Explain the effect of the following separate transactions :

i . Alfred, the proprietor of a registered title of land, orally declares that he holds it on trust for Brian.

ii. Claudia , the proprietor of a registered title to land, completes a registered transfer from
instructing the Chief Land Register to register David as proprietor. Before sending off the
registration form, Claudia obtains David’s agreement by telephone to hold the title on trust for
Elizabeth. David is later registered as proprietor.

iii. Francis, the sole beneficiary of a bare trust of a title to a valuable painting , orally instructs his
trustees to make a gift of the title to Graham , which they do by handing the painting to him;

iv. Harry, the sole beneficiary of a bare trust of shares, orally declares that he holds his rights on
trust for James.

2006/B/Q5

At a recent family dinner, Julia announced, ‘I’ve decided to simplify my life. I no longer want any interest under our
family trusts.’ Turning to her uncle Winston, she said, ‘Winston, you know those shares in Frenchay plc you hold for
me absolutely? I want you to transfer them to my children, Alex and Kate, and I would like you now to pay the money
I receive from my income interest under the trust from my father’s will to my sister Clarice.’ She then said to all
assembled, ‘I would also like to declare that any money I receive under Aunt Sadie’s will I hold on trust for my nieces
and nephews in equal shares.’ The rest of the evening went badly, and Julia has now had second thoughts about
whether her family merits this generosity, and wonders whether her statements are binding.

Advise Julia

2004

Consider the effect of the following acts :

a. A conveys land to B, orally declaring that it is to held on trust for A

b. C conveys land to D, orally declaring that it is to be held on trust for E
c. F , a beneficiary of a trust of shares , orally directs his trustees to hold the shares for G
d. H a beneficiary of a trust of shares , orally declares that he holds his interest on trust for I

2003

What is the legal effect of the following actions :

a. A conveys his land to B on oral trusts for C

b. A declares himself a trustee of his land for C
c. D a beneficiary of a trust of land , orally declares himself a trustee of his beneficial interest for E ;
d. F a beneficiary of a trust of shares , tells his trustees to hold them for G