What is the ratio in Milroy v Lord?

Equity will not assist a volunteer to perfect an imperfect gift; failed transfers cannot be treated as declarations of trust without clear intention.

What did the court decide in Milroy v Lord?

The Court of Appeal held that the imperfect transfer of shares created no valid trust because the proper formalities were not completed and equity would not assist the volunteer.

Why is Milroy v Lord important for trust law?

It established the fundamental principle that equity will not assist volunteers and defined the essential requirements for constituting valid trusts through transfer or declaration.

What is the ratio in Milroy v Lord?

Equity will not assist a volunteer to perfect an imperfect gift; failed transfers cannot be treated as declarations of trust without clear intention.

What did the court decide in Milroy v Lord?

The Court of Appeal held that the imperfect transfer of shares created no valid trust because the proper formalities were not completed and equity would not assist the volunteer.

Why is Milroy v Lord important for trust law?

It established the fundamental principle that equity will not assist volunteers and defined the essential requirements for constituting valid trusts through transfer or declaration.

Equity & Trusts1 min read

Milroy v Lord

(1862) 4 De GF & J 264Court of Appeal1862

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“Imperfect gifts cannot be rescued by implying declaration of trust”

Facts

Samuel Milroy attempted to transfer 50 shares in a bank to Samuel Lord as trustee for Milroy's niece. However, the shares were never properly transferred according to the bank's constitution, which required registration in the company's books. The donor retained possession of the share certificates until his death.

Issues

Whether an imperfect gift could be treated as a valid declaration of trust, and what constitutes complete constitution of a trust.

Held

The gift failed because it was not completely constituted. The court could not treat the imperfect gift as a declaration of trust without clear evidence that the settlor intended to declare himself a trustee.

Significance

This case established the foundational rule for gift constitution in equity and remains the leading authority on when imperfect gifts can be saved as declarations of trust. It is fundamental to understanding voluntary transfers and trust creation.

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OSCOLA Citation

Milroy v Lord (1862) 4 De GF & J 264

Equity and TrustsProperty LawGift Law

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