Equity & Trusts - 2024 Paper 1

The three certainties required to create a valid express trust serve important but distinct functions. Critically evaluate the requirements of certainty of intention, certainty of subject matter, and certainty of objects, and assess whether the courts have applied these requirements consistently.

Arthur, a wealthy businessman, executes a trust deed declaring that he transfers his share portfolio worth £2 million to his solicitor Bella as trustee, to hold on trust for "such of my relatives as Bella shall in her absolute discretion select." Arthur also leaves £500,000 by will "to be divided equally among my close friends." Arthur dies. His nephew Charles and niece Diana claim under the share portfolio trust. Arthur's golfing partner Edward and his neighbour Frances claim to be close friends entitled to the £500,000. Advise on the validity of both dispositions, considering the requirements for certainty of objects.

The law of resulting trusts has been significantly reshaped by the decisions of the House of Lords in Westdeutsche Landesbank v Islington LBC and the Supreme Court in Prest v Petrodel Resources Ltd. Critically evaluate the current scope and function of resulting trusts in English law.

George, a trustee, holds a trust fund of £800,000 for the benefit of Hannah (life interest) and Ivan (remainder). George makes the following investments: (i) he invests £200,000 in shares in his own company, TechStart Ltd; (ii) he lends £150,000 to his brother James at below market interest rate; (iii) he invests £300,000 in a high-risk cryptocurrency fund, losing £250,000; (iv) he uses £50,000 of trust money to renovate his own house, intending to repay it. Hannah and Ivan discover these actions and seek advice. Advise them on George's breaches of duty and the remedies available.

Charitable trusts enjoy significant advantages over private trusts, but the price of these advantages is the requirement that the trust purpose must be exclusively charitable. Discuss the requirements for charitable status under the Charities Act 2011 and assess the significance of the public benefit requirement.