“Informal words 'money is as much yours as mine' created valid express trust”
Mr Constance separated from his wife and lived with Mrs Paul. He received £950 compensation for an injury and deposited it in a bank account, repeatedly telling Mrs Paul the money was 'as much yours as mine'. When Constance died, his widow claimed the entire fund against Mrs Paul.
Whether informal words expressing shared ownership of money can constitute a valid declaration of express trust without formal trust language.
The Court of Appeal held that an express trust had been created. Constance's repeated statements that the money was 'as much yours as mine' constituted a valid declaration of trust in favour of Mrs Paul.
This case established the important principle that technical language is not required to create an express trust, provided the intention is sufficiently clear from the words used and surrounding circumstances.
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OSCOLA Citation
Paul v Constance [1977] 1 WLR 527 (CA)
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