7 x 11 long - Cambridge University Press

Index

Abbot, Pamela, 650

Abel-Smith, Brian, 74

Aberfan disaster, 10–11, 913

acceptance fees, 441

accountability

beneficiaries’ rights, 252–3, 554–64

accounts, 13, 253, 555–6

decision making process and, 560–4

legitimate expectations, 565

natural justice, 564

nature of rights, 558–60

pension funds, 704–6

records, 555–6

charities, 964, 1036

accounts, 1056–9

democracy, 1078–9

fund-raising, 1069

methodology, 1076

neglect, 1074

sources of information, 1059–6

confidentiality principle and, 562–4,

566

duty to whom, 556–7

fiduciary relationships, 821–2, 823

letters of wishes, 566–7

McPhail v Doulton, 556–7, 566

proprietary right or inherent jurisdiction,

558–60

accountants

conflicts of interests, 858–9

proceeds of crime and, 768–70

role in tax avoidance, 112

accounts

accounts of profit, 569, 881, 884

audits, 555–6

charities, 1056–9

false accounts, 113

falsifying accounts, 570–1, 579, 580

surcharging accounts, 570–1

trustees’ duties, 13, 251, 432, 555–6

accumulation and maintenance trusts

income tax, 377

inheritance tax, 403–5, 408

statistics, 109, 110

statutory basis, 363

use for minors, 403–4

variation of trusts, 331

accumulations, rule against, 318,

942

acquiescence, 591–94

Addison, Joseph, 424

administration fees, 441

administration of estates

personal representation and trusts, 17–18

remuneration, 441

advancement. See powers of advancement

advertising, charities, 1072–4

advice

Charity Commission, 1038–9,

1077

family home ownership, 617–18

independent legal advice, 857

investment, 492, 493–5, 501

agents

appointable persons, 522

asset managers, 524–5

beneficiaries as trustees’ agents, 521

conflicts of interest, 523–4,

525

constructive trusts and, 744–5

expenses, 521

fiduciary relationships, 838

financial services, 879

nominees and custodians, 526–7


remuneration, 521, 522

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1082 Index

agents (cont.)

statutory power to use, 521–30

delegable functions, 521–22

scope of power, 521

sub-delegation, 523, 524

terms of appointment, 522–4

trustee liability for agents, 519–20, 526–7

trustees’ agents, 434, 437–8

trusts of land, 521, 523, 529

agricultural property relief, 411

Alexander, Gregory, 268, 275

alternative medicine, 990

altruism, 96, 1023–5, 1034

Amnesty International, 1023, 1026, 1027,

1031, 1073–4

Anderson, BL, 48, 58

animal welfare

beneficiary principle and, 255, 256

charitable status, 966, 997–8

charities, 924

charity campaigns, 1079

vivisection, 1024–6

Anti-Slavery Society, 1028

Anton Piller orders. See search orders

apportionment, 506–7, 509, 510–12, 513–14

armed forces, 966, 998

art galleries, 972

Arthur, S, 653

Arthur Andersen, 861

arts, charitable status, 966, 992–3

Ashburner, Walter, 65, 66

Ashworth, Michael, 1033

asset protection trusts, 303–5

assignment

equitable interests, 128, 132–5

leases, 140

validity, 177–8

associated operations, 412–13

Association of Corporate Trustees, 425

Association of Property Support Lawyers, 617

associations

assets on dissolution, 903–912

bona vacantia, 903–7

law reform, 911

resulting trusts, 903, 904, 906–8, 911–12

bequests

beneficiary principle, 889, 890

case law, 891–900

categories of gifts, 891

certainty of objects, 889

challenges, 890, 941

conceptual confusion, 898–900

Leahy case, 891–3

non-charitable purposes, 941

overview, 889–902

perpetuities, 889

problems, 889–90

purpose trusts, 888, 899

Recher’s Will Trusts, 894–6, 903

restrictive approach, 891–4

widened analysis, 894–7

charities, 915–16

contractual relations, 895–9, 906, 910, 916

features, 885

implied trusts, 888, 890

inward and outward turning, 888

no legal personality, 887–8, 890

ownership, 898

trusts and, 887–9

asylum seekers, 939

Atkinson, Anthony, 105, 106

attorney, powers of, 528

audits

beneficiaries’ right to, 555–6

charities’ accounts, 1057–8, 1060–1

Austen, Jane, 381

Austin, RP, 765–6, 831, 832

Australia

charitable status, 968, 985

cohabitation, home ownership, 664

constructive trusts, 28, 658–60

trading trusts, 20

unconscionability, 658–60, 886

Bacon, Francis, 64

Bacon, Lord, 58

bailment, 818

Baker, Richard, 39, 43, 66

Band Aid, 913

Bank of England, 374

bankruptcy. See insolvency

banks

accounts, cohabiting couples, 623–4, 653

conflicts of interests, 855

constructive trustees, 744

deposits, 469


freezing orders, duty of care, 780

proceeds of crime, 768–70

Quistclose trusts, 804–5

search orders, 785

bare trusts, meaning, 6, 431–2






1083 Index

Barings, 473

Barlow, Anne, 650

Barlow, R, 77–8

Barnado’s Homes, 924, 996

BBC, 1072

BCCI, 713

Bea, David, 784

Bean, JMW, 40

Beddoes Orders, 708

Belloc, Hilaire, 82

beneficial interests

bare v beneficial interests, 128

black hole trusts, 244–5, 253

certainty, 179, 193–4

in rem v in personam, 247–9

requirement, 245–6

beneficiaries

See also beneficiary principle

acquiescence to breach of trust, 591–3

appointment of new trustees and, 536–7

best interests, 467, 492, 696

CGT liability, 385

charities, 4

enforcement, 915–16

compensation by trustees. See trustee

liability

conditions. See conditions precedent

delegation of trustee powers to, land, 521,

529

equitable remedies, 13–15, 252–3

income tax, 379–80

vulnerable beneficiaries, 376, 379–80

large groups, 6, 9–10

maintenance. See maintenance

nature of interests, 247–54

debate, 247–9

discretionary trusts, 250–2

equitable rights, 252–3


pension funds

ownership issues, 690–4

rights, 701–4

power relationships with trustees, 61–2

protection, delegation, 529–30

remedies. See remedies

removal of trustees and, 539–41,

541–2

remuneration of trustees, contracts, 443

right to information, 14, 253, 554–64

accounts, 13, 251, 554–5

decision making process and, 560–4


natural justice, 564

no contest clauses, 566


proprietary right or inherent jurisdiction,

558–60

records, 555–6

splitting benefits, 5

termination. See termination of trusts

volunteers and equity, 179

beneficiary principle

animals, 255, 257

bequests to associations, 889, 890

capricious purposes, 264

categories of cases, 257

charitable purposes and, 254, 255

debate, 254

enforceability and control, 257, 259

fox-hunting, 257

graves, 257, 258

justification, 206, 254

masses, 257

origins, 254–7

principle undermined, 258–64

protectors and, 263, 265–6

purposes trusts, 254–65

Quistclose trusts, 254

benefits, allocation, 4, 5, 8

bereaved minor trusts, 407

Bermuda, 265, 304

Beveridge Report, 930

Birchfield Harriers Athletic Club, 1006

Birks, Peter, 30, 70, 570, 827, 846

Bishop, W, 438

black hole trusts, 244–5, 253

bona vacantia, 135, 904–8

bonds, 9–10, 101

Bottomley, Anne, 633

Bowie, David, 107

Branson, Richard, 107, 473

Brayer, H, 77–8

breach of confidence, 784, 789, 792–3, 851–3

breach of trust

accessory liability, 758–60

acquiescence by beneficiaries, 591

categories, 568, 569–73

constructive trusts, 608, 758–60

injunctions, 776

profitable breaches, 569, 581–2

trustee liability. See trustee liability






1084 Index

Brenton, M, 932

bribes, 881–84

Broadcasting Authority, 1031

Brougham Commission, 929

Brown, Gordon, 115

Brussels Convention on Jurisdiction (1968),

249

Bryant Holdings, 690

Buffet, Warren, 473

building contracts, 824

Burgoyne, C, 650

Burlington International Group, 690

Burrows, Andrew, 69, 736

business. See commerce

business names, 1056

business property relief, 402, 411

Cadbury Foundation, 961

Canada

aboriginal people, 843

constructive trusts, 655–7

family homes and insolvency, 288

fiduciary relationships, 840, 886

investment, impartiality, 511–12

perpetuities, 317, 322, 354

protective trusts, 283–4, 290

public policy and religion, 309

remedial constructive trusts, 32, 846

unjust enrichment, 28, 655–7


Cane, Peter, 588

capacity

settlors, 120–1

trustees, 427–8, 536–7

Capita Trust Company, 426

capital

20th century taxation, 388–90

financial markets, 469–73

income and, 101–2, 382

charitable investments, 505–6

investment policies, 466, 507–10

investment rules, 504, 513–15

judicial concepts, 507–9

investment types, 469–73

taxation, 102–3

See alsospecific taxes

capital gains tax

alignment with income tax rate, 383

annual exemption, 384

avoidance, 135

migration of trusts, 373

off-the-peg schemes, 372, 412

variation of trusts, 347–50, 352–3

business assets, 384

charity exemption, 952, 957, 958

definition of settlement, 375, 376

entrepreneurial relief, 384

flat rate, 384, 385

friendly societies, 955

hold-over relief, 353, 384–5, 411

income v capital, 101–2

indexation, 383, 384

inflation and, 383–4

introduction, 374

law reform, 375–6, 384

mechanism, 383

modernisation, 417

overview, 383–8

taper relief, 383–4

trusts, 385–8

charge, 386–7

creation of settlements, 386

deemed disposals, 374, 386

definition of settled property, 385

disposals, 386

export charge, 374

off-the-peg avoidance schemes, 372,

412

trust rate, 385

capital transfer tax, 103, 388, 389, 394, 407–8,

415, 417

caretaker trusts, 75, 76, 77

Catholic Church, 920, 982–3

causation

constructive trusts, 635–6, 657–8

trustee liability, 573–5, 577–8, 580,

583–4

Cayman Islands, 266

CENTRIS, 1033

certainty

conditions precedent, 267

creation of trusts, 117, 120

intentions, 122, 160–73

maximising, 124

objects. See certainty of objects

subject-matter, 121, 173–8

imputed trusts and, 25, 31, 32–3

intention to create trusts, 121, 160–73

conduct, 165–8

declarations of trust, 165–8

precatory words, 162–4, 185

secret trusts, 168–73






1085 Index

sham intentions, 164–5

wording, 162


resulting trusts and, 714

statutory interpretation of taxation, 92–3

subject-matter

beneficial interests, 179, 193–4

existing property, 173–6

future property, 176–8

residuary estates, 173, 179

tax principle, 98–9, 112

certainty of objects

See also beneficiary principle

assessment, 243–6

associations, 889

charity exemption, 940–1

criterion certainty, 231–7

flexibility and, 209

judicial approach, 123

judicial development, 216–21

Baden case, 224–5

Broadway Cottages, 219, 220, 221, 222,

227, 228, 229, 235

certainty unsatisfactory, 220–1

change, 208, 243–4

criterion certainty, 231–7

from certainty to accountability, 245–6

Gestetner, 217–18, 219–20, 221, 228, 243,

245

Gulbenkian, 221–4, 225–7, 228, 231, 234,

235–6, 243

McPhail v Doulton, 225–31, 238–9, 243–4,

246

re-emergence of discretionary trusts, 208,

216

unresolved issues, 230–43

list certainty, 214, 215, 219, 220, 221, 222

overview, 216–46

principle, 121, 206–7

unresolved issues, 230–3

administrative unworkability, 238–43,

243–4

Baden (No 2), 231–5

black hole trusts, 244–5

conceptual ambiguity, 235–7

duty to survey, 237

fixed trusts, 231–2, 242

Chambers, Robert, 624, 813, 814, 815

Chancellorship, 44

Chancery Court, 13–15, 35, 39–40, 44, 64–5,

921

Channel Islands trusts, 350–5, 373

charges

equitable charges, 720, 732–3

floating charges, 819, 830

registration, 806, 819

reservation of title and, 819, 823

charitable purposes. See charitable status

charitable status

animal welfare, 966, 997–8

arts, 992–3

beneficiary principle and, 254, 255

campaigning for reform, 935

categories, 966, 974–8

Charity Commission decisions, 1038

appeals, 973–4, 1043

discretion, 971, 972–3

numbers, 972

children and young people, 966, 996

citizenship development, 966, 992–3

community development, 966, 992–3

conflict resolution, 966, 994–5

culture, 966, 992–3

definition, 917–18

19th century, 925–9, 964

change agenda, 964–6

Charities Act 2006, 966–48

evolution, 968

harmonising, 934

law reform, 264, 965, 1032–4

Pemsel, 926–9, 963, 966–8, 969, 1021,

1032

recognition of new purposes, 998–1003

requirements, summary, 969–71

statutory definition, 966, 967–9

tax v judicial approaches, 964

disability, 966, 996

education, 966, 978–82

personal nexus test, 1008–9

public benefit, 1008–9, 1014–15,

1021–3

effect of case law, 217

elderly care, 1033

environmental protection, 966, 995–6

health, 966, 990–1, 1017, 1021

human rights, 966, 994–5

international activities, 1006

interpretation of trust deeds, 971–2

old age, 966, 996, 1033–4

political activity prohibition, 971

assessment, 1028–32

campaigning, 1026–8






1086 Index

charitable status (cont.)

organisational fission, 1027

paternalism, 1027

poverty relief, 976

practice, 1026–9

principle, 1023–32

scope of principle, 1023–32

political parties, 1023

poverty relief, 963, 974–8

public benefit, 1009–10

public benefit, 964, 1006–25

19th century cases, 925–6

altruism, 1021–3, 1034

Charities Act 2006, 966, 968–9

classes within classes, 1016–17, 1019

education, 1008–9, 1014–15,

1023

fee charging, 1008, 1017–21,

1033–4

fiscal privileges, 1013, 1014

flexibility, 1011–16

personal nexus test, 1008–9, 1016, 1021,

1022

political activities, 1029

poverty relief, 1009–10

private hospitals, 991, 1017–19,

1023

profit distribution, 966, 1017–21

public opinion, 969

religion, 1016

religious activities, 985–6

sections of the public, 969–70, 1017–18,

1023–5

public opinion, 917, 969

recreational purposes, 1004–6

registration, 917, 971–4

appeals, 974–5, 1043


exempt charities, 974, 1056

religion, 966, 982–90, 1016, 1029–30

emergent liberalism, 982–3

meaning of religion, 983–5

means of advancement, 989–90


rescue services, 966, 998

review, 965

science, 966, 992–3

significance, 961

sports, 967, 968, 993–4

students’ unions, 1031

tax status and, 1033–4

charitable trusts

See also charities

deficiencies, 915–16

enforcement, 915–16

motivations, 915

privileges, 940–52

certainty of objects, 940–1

cy-pres doctrine, 943–51

declining importance, 951–2

misuse, 943–4

perpetuities, 941–3

tax. See charities

strengths, 915

trustees

appointment, 1063

charity proceedings, 1065

criminal liability, 1067

definition, 1038

duties, 1076

empowerment, 1075

independence, 1064

insurance, 1078

liability, 1064–7

monitoring, 1056–7

numbers, 1077

removal, 1063, 1064

remuneration, 442, 1077–8

use of trust form, 12, 34

charities

accountability, 965, 1037

democracy, 1078–9

fund-raising, 1070

methodology, 1075

neglect, 1075

accounts

audits, 1057–8

small charities, 1058

supervision, 1056–60

administration costs, 1055

advertising, 1072–3

altruism, 96, 1021–3, 1034

beneficiaries, 4

commercial activities, competition, 959, 963

definition. See charitable status

disaster funds, 10–11, 913

discrimination, 956–60, 1044

diversity, 1037, 1054

fund-raising, 1067–72

Charity Commission guidelines, 1071–2

costs, 1068

criminal liability, 1071–2






1087 Index

door-to-door collections, 1071

law reform, 1038

malpractice, 1068

methods, 1069

professional fund-raising, 1067–8,

1069–71

public collections, 1071

public opinion, 1055, 1068

self-regulation, 1068–9

statutory regulation, 1069–71

funding

charitable status and, 961

corporate donations, 937

demography of donors, 962–3

fees, 939, 991, 1008, 1017–21, 1033–4

grant-making trusts, 961

income, 936, 961

individual giving, 936–7

legacies depriving families, 924

National Lottery, 938–9, 961

new patterns, 936–7

state funding, 937–8, 962, 1033

Goodman Report, 1033

governance, 965

history of charity law, 920–30

17th century, 921–2

18th century, 922


Middle Ages, 920

Tudors, 920–1

welfare state, 930–9

human rights obligations, 919–20

investment, 1040–1

apportionment, 506–7

best interests, 467

common investment funds, 1040–1

policies, 467

legal forms, 916–17

associations, 916

charitable incorporated organisations,

917

companies limited by guarantee, 916–17

law reform, 917

trusts. See charitable trusts

legal proceedings, 1064–6

authorisation, 1065, 1080


locus standi, 1065–6

mediation, 1066–7

local charities, 1045–6, 1053–4

mergers, 1053, 1054

modernisation, 964–6, 1038, 1045–6,

1049–55

names, 1056

privileges, 940–60

certainty of objects, 940–2

cy-pres doctrine, 943–51

declining importance, 951–2

misuse, 942

perpetuities, 941–3

public benefit and, 1013

tax, 952–60

trusts, 940–52

public opinion, 917, 969, 1055, 1068

public trust in, 961, 1055, 1075

registration, 917

appeals, 974–5, 1043

checks on trustees, 1055–6

discretion, 1076

exempt charities, 974, 1056

procedure, 971–4

registration pack, 1040

risk assessments, 1057

scope, 1057

unregistered charities, 935

regulation

criminal liability, 1067, 1071–2

criticism, 1036, 1057

law reform, 1037

light touch, 1058, 1062

small charities, 1058, 1059

trustee liability, 1064–7

shops, 959

state and, 1003, 1032

state functions, 1034–5

state funding, 938–9, 961

statistics, 934–6

supervision, 1055–6

accounts, 1057–60

Charity Commission consents, 1041–3

flexibility, 1074

investigations, 1061–2, 1075

land transactions, 1042–3

limits, 1074–80

preventing maladministration, 1057–74

protection of property, 1062–4


sources of information, 1060–1

whistle blowing, 1061

tax reliefs, 216, 218, 920, 952–9

19th century, 925–8, 929

categories, 954–6






1088 Index

charities (cont.)

CGT, 952, 953

development, 952–54

donor relief, 956

effect on donors, 952–3

GAYE, 957

Gift Aid, 937, 952, 953–4, 956

inappropriate privileges, 965

income tax, 952, 953–5, 956

inheritance tax, 391, 957, 959

judicial approaches, 962

monitoring, 1066

non-domestic rates, 956

privilege, 958–9

public benefit and, 1013, 1014

review, 52

separation from charitable status, 1032–3

value, 957

VAT, 953, 955

withdrawal, 1067

trusts. See charitable trusts

welfare state age, 930–9

income, 936, 961

new funding patterns, 936–9

new roles, 930–4

new social concerns, 935

numbers, 934–5

state relations, 1003, 1031

Charities Aid Foundation (CAF), 935, 954–5

charity. See philanthropy

Charity Commission

autonomy, 1036

budget, 1039

charitable status and

animal welfare, 997

Church of Scientology, 984–5, 988–9

cloistered nuns, 986

community development, 991


environmental protection, 995–6

GMC, 980

guidelines, 968–71

health charities, 990, 1021

human rights, 995

independent schools, 1022–3

industrial relations, 1003

international activities, 1006

political activities, 1023–5, 1026–32

poverty relief, 1009

public benefit, 1016–17, 1021–3, 1023–6

public opinion and, 969

racial harmony, 1001–2

recognition of new purposes, 1000–2

recreational charities, 1004, 1005

restorative justice, 995

review, 966

sports, 993

state functions, 1003

critical reports, 1036, 1058, 1074–5

functions, 916, 1038–43

advice, 1039–40, 1080

common investment funds, 1040–1

custody of charity property, 1040

cy-pres schemes. See1 cy-pres schemes

determination of charitable status, 1038

origins, 1036

quasi-judicial functions, 1038


sanctioning transactions, 1040–3

standard setting, 1057–8

strengthening, 1038, 1080

human rights obligations, 919

objectives, 1022, 1038, 1040

origins, 928, 1036

powers, 1040, 1057–8

imposing trustee liability, 1065–8

investigations, 1061–2

modernising, 936, 1080

removing trustees, 1063

schemes of administration, 943

registration decisions, 1039

appeals, 974–5, 1043


numbers, 972–3

staff, 1038, 1039

structure, 1038

supervisory role, 1056

accounts, 1057–60

advertising, 1072–4

fund-raising, 1067, 1069

HMRC data, 1060

information sources, 1060–1

investigations, 1061–2, 1075, 1080

light touch, 1062

limits, 1074–80

maladministration, 1057–76

protection of property, 1062–4


Charity Organisation Society, 923, 931

Charity Tribunal, 973, 1043

Chesterman, Michael, 1032, 1033

Child Poverty Action Group, 931






1089 Index

children

charities, 996

financial provision, 614


orphans, income tax, 377

public policy protection, 306

reasonable financial provision, 307–8

stepchildren, 382

Children in Need, 1072

Children with Cancer (CwC), 1067–8

Chinese Walls, 857–8, 859–60, 870, 880

chugging, 1068


citizenship, 966, 991–2

civil law jurisdictions, 21–3

civil partnerships, 310, 612, 665

clean hands, 314

Clements, Alan, 1067–8

clubs, 11, 12

cohabitation

bank accounts, 623

division of property, 613–14

family home ownership


joint ownership, 615–24

law reform, 650, 663–4

legitimate expectations, 661–3

reallocative schemes, 664–8

social context, 649–53

unconscionability, 658–61

unjust enrichment, 654–8

statistics, 647

Coke, Edward, 38–9, 64

Cole, CG, 484–5

collective investments, 9–10, 12, 33

Comic Relief, 913

commerce

charities and, 1036

fiduciary morality and, 833–4,

873–8

financing, 795

history, 45–7

legal change and, 31

no secret profit rule and, 874

recipient liability, 748–57

reservation of title and, 818–19, 830

standards of conduct, 873–5

trusts and, 33–4, 58–9, 666–70

commercial trusts

family trusts and, 534, 580

growth, 423–4

pensions. See occupational pension schemes

commissions, 451

common law, equity and. See equity

Commonwealth jurisdictions, 885–6

communis error facit jus, 900

Community Amateur Sports Club scheme, 959

community development, 966, 991–2

Community Fund, 938–9

community interest companies, 992

companies

charitable donations, 936

community interest companies, 992

corporate trustees. See trustees

deed of settlement companies, 19, 45


directors. See directors

family companies, tax planning, 410–11

investment trusts, 19–20

limited by guarantee, charities, 916

nominee shareholders, 6

protection against insolvency, 10

trusts, comparison with, 18–20

compensation

See also damages

breach of fiduciary duty, 881, 884–5

classification, 569–73

compensatory damages, 573, 579

debate, 583–8

equitable compensation, 572–3, 579, 881,

884–5

equity and common law, 571–2, 583–8

measuring trustee liability, 573–88

personal or collective, 588–9

reparative compensation, 573, 578

substitutive compensation, 573, 579, 583

terminology, 572–3, 579

trustee liability, 568–602, 884

competition, charity shops, 959, 963

compromises, 331–4

Conaglen, Matthew, 457, 835

conditions precedent

contingent entitlement, 5

public policy and, 268–70, 305

variation of trusts, 345–6

confidentiality

breach of confidence, 784, 789, 792–3,

851–3

charity mediation, 1066–7

fiduciary duty, 838, 851–3

HMRC data, 1060

trustees’ decisions, 562–4, 566






1090 Index

conflict of laws, 352

conflict resolution, 966, 967, 994–5

conflicts of interests

agents, 523, 524

asset management, 525

categories, 855–6

Chinese Walls, 857–8, 859–60, 870, 880

directors, 874–5

fiduciaries, 842, 855–63

ongoing business relations, 860–1

pension trustees, 681–3, 688, 700–1,

711

solicitors, 857–60

trustees, 434–59, 572

undivided loyalty, 856

consideration, creation of trusts, 122

constructive trusts

accessory liability, 743–4, 758–69

breach of trust, 758–60

dishonesty, 760–9

knowing assistance, 764

proceeds of crime, 766–8

requirements, 758

secondary liability, 768

unconscionability, 766

vicarious liability, 768–9

categories, 24–7

CGT avoidance and, 135

commercial sphere, 608

contracts for sale of land, 120

debate, 25–8

equitable personal liability, 14

accessory liability, 743–4, 759–69

categories, 742–6

dishonesty, 715–16, 719, 743–4

fraud and, 744–5

recipient liability, 743–4, 745–56

third parties, 742–6

family homes, 627–49

detrimental reliance, 633–4

direct contributions and intentions,

641–9

estoppel or, 638–41

indirect contributions, 642–5, 652

inferences and imputations, 645–6

informal agreements, 630–5

Lloyds Bank v Rosset, 628–9

quantification of shares, 636–7, 647–9

reasonable expectations, 661–3

fraud avoidance, 135

fraudulent creation of trusts, 126

institutional constructive trusts, 26

justice and, 833–4

operation of law, 24, 26

recipient liability, 742–4, 745–57

carelessness, 756

dishonesty, 747, 751

knowledge, 746–51, 755, 757

notice, 747–8, 755, 756

requirements, 746

restitution, 754–6

strict liability, 754–6, 757

subsequent knowledge, 757

unconscionability, 747, 751–4, 756

remedial constructive trusts, 26–7, 28, 32

breach of fiduciary duty, 881

fiduciary relationships, 608, 832, 845–61

Goldcorp case, 847–52

insolvency, 846–51

property rights and, 846–7

Quistclose trusts and, 816–17

secret profits, 882

requirements, 608

causation, 634–5, 656–7



resulting trusts or, 24–5, 607–8

scenarios, 11–12

secret trusts and, 157

third parties and, 32

uncertainty, 25, 31, 32–3

unconscionability, 26, 33, 608, 658–61


consumer prepayments and insolvency

compensation schemes, 797

directors’ duties, 802–3

Kayford trusts, 798–802, 830, 850

limitation of trusts, 800–3

problem, 796

remedies, 796–801

statutory trust proposal, 800–1, 802

Consumers’ Association, 469

contracts

associations, 895–9, 906, 910, 916

charities and public contracts, 919, 1033–5

commercial contracts and fiduciary duty,

876–9

consumer prepayments, 803

contracts for sale of land, equitable interests,

120

damages, 68

employment contracts, pension rights, 704






1091 Index

fiduciary relationships and, 835–6, 841–2

incomplete trust creation, 179–82

limitation of actions, 598

privity of contract, 180, 186

reservation of title, 818–19

rights of third parties, 186–7

specific performance, 714, 715, 786–8

tracing and, 17

trusts and, 16–17

unfair terms, 597

void contracts, 30

conversion, 5, 46, 329, 332, 506–7, 510–12, 513

conveyancing

creating perpetual non-charitable trusts,

941–52

discretionary trusts and, 216

protective trusts, 275

Cook, WW, 247

Cook Islands, 304, 535

cooperative societies, 923

copyright, 136, 784

Cork Report

consumer prepayments, 800–2, 803

defrauding creditors, 292, 293, 298

family homes, 284

fraudulent preferences, 300

marriage settlements, 295

object of insolvency law, 271–2

protective trusts, 280–1, 291

reservation of title, 817, 819, 830–1

spouses’ assets, 284

transactions at undervalue, 300

trusts and insolvency, 795–6

corporate bonds, 471, 474

Cottenham, Lord, 422

Cotterrell, R, 60–1, 692

Court Funds Office, 428

Court of Protection, 429

Court of Wards, 41

courts, public authorities, 308, 919–20

covenants, 181, 182–6, 187–90

creation of trusts

capacity, 120–1

certainty, 117, 121

maximising, 124


subject-matter, 121, 173–8

certainty of intentions, 121, 160–72

conduct, 165–7

incomplete constitution, 179–92

precatory words, 161–3, 185


sham intentions, 164

wording, 160–3

certainty of subject-matter





CGT charge, 386

completion requirement, 122

contracts, 179–82

contracts and rights of third parties,

186–7

covenants and legal policy, 187–90

covenants of future property, 183–5

covenants to settle, 181, 182–3

intentions and incomplete constitution,

179–93

inter vivos gifts, 136–45

land transfers, 145

Milroy v Lord, 136–7

non-assistance to volunteers, 180, 190–1

proprietary estoppel, 191

Re Rose, 137–44

share transfers, 136, 137–44

testamentary trusts, 146–59


conditions precedent

certainty, 267

public policy, 267–8, 305

declarations. See declarations of trust

equitable interests, 123, 126–37

assignment contracts for consideration,

132–5

declarations by owners of themselves as

trustees, 131–2

declarations of trusts, 124, 125–6, 127

direct assignment to third parties, 128

direction to hold for third parties, 129–31

principle, 135

sub-trusts, 131–2

equity maxims and, 117, 118–20

formalities, 122, 123–60

implied trusts and, 604–5


law reform, 135

testamentary trusts, 146–59

Vandervell saga, 199, 200,

203

fraud, 119, 125–6

freedom of disposition, 267, 316, 323, 355






1092 Index

creation of trusts (cont.)

gifts, 116–18

intentions, 23, 160–93

assessment, 192–3

centrality, 116–18

contracts, 179–82

contracts and rights of third parties,

186–7

covenants and legal policy, 187–90

covenants of future property, 183–5

covenants to settle, 181, 182–3

equity principle, 118

incomplete constitution, 179–91

marriage settlements, 181–2, 188–90

non-assistance to volunteers, 180, 190–1

proprietary estoppel, 191

respecting, 125

inter vivos gifts, 124, 136–45

share transfers, 136, 137–44

land interests, 125

marriage settlements, 181–2, 188–90

minors, 121

public policy limits. See public policy

requirements, overview, 120–3

resulting trusts, 193–7

tax liability and, 118

testamentary trusts, 124

donatio mortis causa, 157–8

formalities, 146

mutual wills, 156–7


transfers, 124–5

valuable consideration, 122

Vandervell litigation, 118, 193–205

writing, 116, 125

interests in land, 125

credit

consumer prepayments, 796–803

development, 796

insolvency and, 796

protecting lenders’ interests, 803

Quistclose trusts, 804–17

reservation of title, 817–32

creditors. See insolvency

CREST, 138, 519, 526

criminal injuries compensation, 407

Critchley, Patricia, 154

Crowder, FP, 337

Cruise, Tom, 984

Crusades, 37, 38

Cullity, MC, 543

culture, charitable status, 966, 992–3

custodian trustees, 430–1

custodians, 526

cy-pres schemes

19th century, 929

charitable appeals, 949

Charity Commission function, 942, 943,

1060

co-ordination of activities, 1045–6, 1052–4

discretion, 1075

discrimination and, 956, 1039

education, 921

failure of trusts, 941–3, 1038–9

statutory redefinition, 1041–4

general charitable intention, 943–6

instigation of proceedings, 1051–2

modernisation agenda, 1043–5, 1046–51

operation, 1043–55

origins, 920

poverty relief, 975–6

privilege of charitable trusts, 943–52

small charities, 1052

damages

adequacy, interim injunctions, 773, 774, 775

causation, 573–5, 577, 583–7

common law, 788

contracts, 68

equitable damages, 788–92

breach of confidence, 791–2

breach of covenant, 792

discretion, 790–1

jurisdiction, 789–90

loss of bargaining opportunity, 792–3

no financial loss, 793–4

quantification, 791–3

foreseeability, 575–6, 585

remoteness of loss, 575–6, 578, 583–4

trustees. See trustee liability

undertakings

freezing orders, 780

search orders, 783

David, EM, 515

Davies of Oldham, Lord, 939

Deakin Report, 936, 965, 1032, 1077, 1078–9

death duties. See estate duties

debenture trusts, 9–10

declarations of trust

certainty of intentions, 164–7

equitable interests, 123–6, 128

joint homes, 616–17

settlors as trustees, 131–2

trustees, 123–4, 137






1093 Index

trusts of land, 607

validity, 198, 202–3

deed of settlement companies, 19, 45

delegation

agents’ expenses, 521

appointable persons, 522

asset management

2000 Act, 460, 520, 524–5

law reform, 518

model, 530

pension funds, 683, 684–5

beneficiaries, to, 521

charity trustees, 1076

commercial practice, 669

conflicts of interest, 524, 525,

526

constructive trusts and, 743

delegable functions, 521

development, 48, 518–19

expert tasks, 518

individual delegation, 528–9

law reform, 519, 524, 529–30

managerialism, 530–1

nominees and custodians, 526

non-delegation rule

anachronism, 460

justification, 527–8

testamentary powers, 245

overview, 518–31

pension trusts, 529

investment, 683, 684–6

powers of advancement, 362

powers of attorney, 528

prohibited functions, 522

protection of beneficiaries, 530–1


standards of care and, 462–3

statutory power, 434, 520–9

scope, 521

sub-delegation, 523, 524

terms of appointment, 522–4

trustee liability for agents, 519–20,

526–7

trusts of land, 521, 523, 529

vicarious liability, 527

demography, 924

Demos, 964–5

Denning, Lord, 66, 778

derivatives, 472–3

determinable interests

protective trusts, 271, 275, 276

public policy and, 270–1, 305–6

Detweiler, Frank, 76

Dewhurst, 81

Dianetics, 984

Dicey, AV, 56

Dickens, Charles, 276

Diplock, Lord, 66–7

Direct Marketing Association, 797

directors


duty to creditors, 800–1

fees, 447–51

fiduciary duties, 837, 838–9, 874–5

trustees as directors, liability, 500

disability

charitable status, 966, 996

definition, 407

discrimination, charities, 959–60

trusts for disabled, taxation, 377, 407

disaster funds, 10–11, 913

Disasters Emergency Committee, 913,

954

disclosure. See accountability

discretionary trusts

administrative workability, 238–43, 244

allocation of benefits, 4, 110–11

beneficiary principle, 252–66

black hole trusts, 244–5

capital transfer tax, 417

certainty of beneficial interests, 179

certainty of objects, 215, 216–37

conveyancing use, 216

equitable ownership, 249–50

meaning, 216

mere powers or, 215, 216–30, 238–43

nature, 371

nature of beneficiaries’ interests, 247–54

origins, 49–50

pension funds, 220–1, 243

power relationships, 61

powers, diagram, 242

powers of advancement, 358–60

premature termination, 328

protective trusts. See protective trusts

re-emergence, 208, 216, 323, 408–9, 533

statistics, 108, 110–12, 531

tax planning

capital transfer tax, 408

CGT, hold-over relief, 411

IHT, 94, 291, 385, 408–9, 410, 531

income tax, 379

use, 73, 77, 93–4, 216, 247, 323

uses, 7–9, 207






1094 Index

discrimination

charities, 959–60, 1044

disability, 959–60

ECHR ban, 1025

gender, 959–60

race, 305–7, 959–60, 1044

religion, 306–7, 308, 345–6, 920

dividends, income tax, 377, 378, 379

divorce, liberalisation, 610–12

donatio mortis causa, 157–8, 159, 191

door-to-door collections, 1071

dot.com boom, 474

Douglas, GF, 615, 617, 623

dowers, 54

Dowrick, Brian, 687

Duggan, Anthony, 854, 861

Dunn, AT, 110–11

duty of care

common law or equity, 69

delegation and, 462–3, 526–7

fiduciary duty, 572


investment. See investment

law reform, 463

lay trustees, 465

overview, 461–6

prudent man of business, 461–2, 467

codification, 464, 465–6

investment policies, 480–4, 501–5

liability for agents, 519–20

trustee liability, 599

small family trusts, 501–2

special knowledge, 462, 464–5

standards

development, 48, 461

pension trustees, 686

professional trustees, 461–2, 465, 594


statutory duty, 461, 462–6

common law and, 461, 465–6

exclusion, 466

investment, 490

liberalisation, 466, 467

modification, 466

origins, 51

reasonableness, 464

scope, 463

dynastic trusts, 75–7, 95, 304, 321

ecclesiastical courts, 326

economic liberalism, 62, 190

Edelman, James, 573, 579

education, charitable status

dynamic concept, 978

fee-charging schools, 939, 1021–2, 1033

further education corporations, 972

legal education, 979

overview, 978–82

personal nexus test, 1008–9

professional education, 979–80

public benefit, 1006–8, 1015–16, 1020–4

restrictions, 981–2

scope, 978–81

statutory provision, 965

Eldon, John Scott, Lord, 44, 64–5

Elias, Gbolahan, 830

Ellesmere, Lord, 64

Elliott, Steven, 573, 579, 587

emergency jurisdiction, 329

employee benefit funds

beneficiary principle and, 258

certainty of objects and, 216

control, 257

discretionary trusts, 210

powers or trust powers, 227

employment, fiduciary relationships, 837

enforcers. See protectors

English China Clays, 690

English Ethnic Trust, 960

Enron, 861, 875

environmental protection, charitable status,

966, 995–6

equality is equity, 179, 220, 230

equitable charges, 720, 733

equitable interests

assignment, 128, 132–5

bare v beneficial interests, 128

creation of trusts, 123, 126–37

assignment contracts for consideration,

132–5

declarations by owners of themselves as

trustees, 131–2

declarations of trusts, 123–6, 127

direct assignment to third parties, 128

direction to hold for third parties, 129–31

principle, 135

sub-trusts, 131–2

Vandervell case, 197

disclaimers, 135–6


equitable rights and, 252–3

life interests. See life interests






1095 Index

equity

Chancery Court, 13–15, 35, 39–40, 64–5

clean hands, 314

commercial law and, 877–9

common law and, 63–5

compensation, 569–70, 581–6

harmonisation, 65–71, 534, 793

remedies, 713–14

conscience, 30–1

creation of trusts and, 117, 118–20

creditors v beneficiaries, 851

doing as ought to be done, 119–20

dynamism, 246, 886

equality is equity, 179, 220, 230

equitable compensation, 572, 579, 881,

884–5

equitable fraud, 593

equity following law, 311, 617–19

fraud under statute and, 119, 125–6, 147

gratuitous promises and, 118

implied trusts. See implied trusts

intention over form, 119

interpretation of maxims, 144–5

Judicature Acts 1873/75, 65, 66


laches, 601–2

law and, 313–4

leases, 120

maxims, 118–20

non-assistance to volunteers, 118–19, 143,

146, 180, 190–1

non-perfection of imperfect gift, 117,

118–19

protection of vulnerable, 886

remedies. See remedies

role, 5, 13–15

statutory rules and, 120

equity securities. See shares

Esher, Lord, 66

estate agents, 798, 858, 860

estate duties

See also inheritance tax

certainty of objects and, 220

CTT, 103, 389, 390, 407–8

inheritance v donor-basis, 389

law reform, 388–90

lifetime gifts and, 93–4, 388, 389

perpetuities and, 321

powers of advancement and, 358–61

rates, 388

Re Rose, 138–40

taxation of capital and, 102–3


voluntary taxes, 107–8, 389

estoppel

constructive trusts and, 28, 638–42

proprietary estoppel, 191, 638–42

Etherton, Terence, 657

ethical investing, 484–9

ethnic minorities, 960

Eton College, 917

European Convention on Human Rights

Convention rights, 1025

Human Rights Act and, 1025

incorporation into UK law, 308, 919

private and family life, 288

property rights, 308

religious freedom, 308, 985

European Union

consumer prepayments, 803

distance selling, 803

equal treatment, 681

MiFID, 685

money laundering, 745

Pensions Directive, 682

voluntary sector, 1035

exchange controls, 374

exorcism, 990

express trusts, meaning, 3

fair dealing, 456–9, 601, 857, 878

Fairtrade, 973, 975

falsifying accounts, 571, 579, 580

family companies, tax planning, 410

family homes

1882 Married Women’s Property Act, 609–10

cohabitation, 613–14

common law, 609



direct contributions and intentions,

641–9

indirect contributions, 642–5, 654

inferences and imputations, 645–6


Lloyds Bank v Rosset, 628–9

proprietary estoppel or, 638–42

quantification of shares, 636–7, 647–9

reasonable expectations, 662–3



equality of division, 611–12






1096 Index

family homes (cont.)

gender and, 650–2

implied trusts, 24, 608–15

conceptual development, 605–6

constructive or resulting trusts, 608

express trusts and, 606–7

Gissing case, 610–11


new directions, 654–68

Pettit case, 610–11, 620

policy issues, 654–64


increase in home ownership, 605

insolvency and, 285–8

human rights, 288

joint equitable ownership, presumption,

311

joint legal ownership, 615–24

economic factors, 615

express declarations, 616–17

no express declarations, 617–24

presumption of equal share, 617–24

non-sexual relationships, 614–15, 623–4

occupation rights, 612

ownership issues

gender, 650–2

increase, 605

law reform, 664–8

legal advice, 617

reallocative schemes, 664–8

scenarios, 604–5


policy issues, 654–63

resulting trusts, 193, 311, 624–8

Sharing Homes, 604–5, 613, 637, 663–4, 667

sole legal ownership


overview, 624–49

resulting trusts, 193, 311, 624–8

trusts and, 34


family trusts

commercial trusts and, 534, 580

custodian trustees and, 431


protective trusts, 272, 275–91

public policy, 271–4, 289–90

safeguarding settlors’ property, 291–305

public policy and, 418

small trusts, trustee liability, 501–2

feminism, 57, 982

Ferranti, 497

feudalism, 36–9, 41–2, 43, 57

fideicommissum, 37

fiduciary relationships

breach of confidence, 837, 851–3

breach of duty, 572, 581–2, 835–6

bribes, 881–4

determination of liability, 838

remedies, 881–4

collaborative relationships, 838

commerce and, 833–4, 875–9

conflicts of interests, 841, 855–61

commercial world, 458–9

legal tradition, 435–7


duty of care and, 572

duty to account, 822–3, 828

equitable tracing, 718–20, 820–2, 824, 845

errors of judgment and, 552

fictional relationships, 838, 843

identification, 838–45

contracts, 834–5, 840

power and discretion test, 838, 839–41

remedy or relationship, 842–5

scope, 841–2

undertaking test, 838, 839

vulnerability, 840


meaning, 584, 835–6

morality, 833–5

no profit rule, 421, 435–6, 835–6

origins of concept, 835–7

regulatory context, 879–81

remedial constructive trusts, 607

dangers, 846–7

Goldcorp case, 847–51

justice, 833–4

overview, 845–51

reservation of title and, 819–23, 824, 829

scenarios, 832–3

secret profits, 855, 862–4

standards of conduct, 834, 874–6

torts and, 583–8, 840

traditional model, 421

trustee-beneficiary, 833

undue influence, 851–5

financial crisis, 472–3

financial markets

deregulation, 472–3

types of investments, 469–72

Financial Ombudsman, 707






1097 Index

financial services

conflicts of interests, 855

self-regulation, 878

Finn, Paul, 421, 839–40, 845, 851, 857, 878,

885–6

fixed trusts, 231–2, 243

Flannigan, Robert, 854

floating charges, 819, 830

floating trusts, 175–6

Flower, J, 507–8


founders. See settlors

fox-hunting, 257, 1079

France, fiducies, 23

Franklin, Mitchell, 1–2, 423, 534

fraud

19th century charities, 929


constructive trusts and, 135, 715–16, 719,

744–5

accessory liability, 758, 759–69

equity and, 119, 125–6, 146

examples, 713

exclusion clauses and, 592–3

fraud on a power, 696

injunctions and, 715

money laundering and, 713

secret trusts, 150, 152–4, 155, 159,

160

social security, 311–13

tracing, 713, 719

trusts and public policy, 310–16

UK economic crime, 745

free alienability, 327–8

freedom of conscience, 306–8, 983, 985, 1025

freedom of disposition, 268, 317, 323,

355

freedom of expression, 775–6, 920, 1025

freezing orders

allowance for living expenses, 780

attachable assets, 778

duty of care, 780

ex parte hearings, 779

extensive harm, 777

foreign company defendants, 779

good arguable cases, 778

interim relief, 780

jurisdiction, 777

nuclear weapon, 777

objective, 777

public policy, 777

requirements, 777–9

risk of asset dissipation, 777–8

role, 712

terminology, 777

undertakings in damages, 780

worldwide orders, 779, 780–4

exceptional circumstances, 781, 782


Polly Peck, 782

safeguards, 781–2

Friedman, Lawrence, 75–7, 78, 159, 423

friendly societies, 923, 959

Fries, Richard, 1075

Frost, Martyn, 426

FTSE4Good Index, 489

Galsworthy, John, 424

gambling, 101, 721

Gardner, Simon, 120, 159, 168, 187, 190, 243,

264, 563, 631, 649, 658, 910, 1023

Garfield Poverty Trust, 975

GAYE, 957

GEC-Marconi, 497

Gee, Steven, 778–9

Geldof, Bob, 913

gender, home ownership and, 650–2

gender discrimination, 959–60

General Medical Council, 980

Getzler, Joshua, 71, 585, 841

Gift Aid, 937, 953, 954–5, 958

gilts, 470–1, 474

Gingerbread, 931

Girl Guides, 960

Gladstone, William, 99, 415, 925

globalisation, 21–3

good faith, origins, 49

Goode, Roy, 739, 821, 822

Goode Report, 677, 679, 705, 710

Goodhart, William, 806, 830

Goodman Report, 1033

Gordon, Jeffrey, 62, 503

grant-making trusts, 957

Grantham, Ross, 851

gratuitous promises, 118, 123

graves, 256, 257

Gray, John Chipman, 288–9

Gray, Kevin, 288

Grbich, Yuri, 216, 238, 254

Great Depression, 497

Green, B, 910

Griswold, E, 290






1098 Index

Grosh, D, 468

Gulbenkian Foundation, 961

Gummow, Justice, 815

Habakkuk, John, 51–2

Hackney, J, 192, 910, 917

Hague Trusts Convention, 21–2, 352

Hampton Fuel Allotment Charity, 1042

Hanbury, Harold, 543, 943, 1009

Hansard, 86

Harbury, CD, 106–7

Hardwicke, Philip Yorke, Lord, 44

Harris, Ron, 59, 214, 246, 249, 330, 343,

354

Harrison, AJ, 105, 106

Hayton, David, 182, 584, 639

Healey, Denis, 102, 407

health

alternative medicine, 990


fee charging, 991, 1017–19, 1021, 1022,

1031

state and charities, 1003

hedge funds, 472–3

Hendrix, Jimmy, 794

Henry VII, 41

Henry VIII, 41, 42

Hepker, Michael, 409

heritage, charitable status, 966, 992–3

Heydon, JD, 584–5

Hicks, JR, 507

Hilliard, JJB, 568

history of trusts

14th–15th centuries, 40–1

16th century, 41–3, 45

17th century, 44

Chancery jurisdiction, 39–40

emergence of modern trusts, 45–51

change of wealth-holding, 45–7

corporate trustees, 48

delegation, 48


investment guidelines, 47–8

premature termination, 50, 62, 248

professional trustees, 48


standards, 48–9

statutory regulation, 50–1

married women, 53, 54–7

Middle Ages, 35, 36–41

overview, 35–71

role in English law, 57–63

Statute of Uses, 41–4, 45, 46

strict settlements, 53–4

Hitchens, DMWN, 106–7

Hobhouse, Leonard, 105

Hoffman, PDRB, 110–11

Hoffmann, Lord, 93

Holcombe, Lee, 55–6

Holdsworth, William Searle, 40

Horne, Cozens-Hardy, 216

HRMC, confidential information, 1060

Hubbard, Ron, 984

human rights


law reform, 1025

political activity, 1023, 1026

discrimination. See discrimination


public authorities, obligations, 308,

919

religious freedom, 307, 308

Hutchinson, JD, 484–5

Hutton, Matthew, 404, 410–11

hybrid trusts, 417

illegality, public policy and, 310–16

impartiality of investment

allocation of expenses, 505–6

apportionment, 506–7, 512–14

capital and income, 505–6, 507–8, 514–16

conversion, 506–7, 510–11, 514

fair balance, 514, 516–17

general duty, 506, 510–13, 517–18

investment process, 510


overview, 505–18


scope of duty, 510–13

settlors’ intentions and, 506

trustees’ duties, 432–3, 460, 492

implied trusts

associations, 887, 889

boundaries, 28–33

categories, 4, 23–7, 607–8

constructive trusts. See constructive trusts

equitable doctrine, 607

express trusts and, 23, 606–7

family homes. See family homes

insolvency and, 795

meaning, 3–4

oral declarations, 607

overview, 23–8

parties’ intentions, 606, 607






1099 Index

resulting trusts. See resulting trusts

terminology, 24

uncertainty, 25, 31, 32–3

unfettered discretion, 33

unifying principle, 27


imputed trusts. See implied trusts

inalienability, rule against, 319, 900

income

capital and, 101–2, 383

charitable investments, 506–7

investment policies, 466, 507–10

investment rules, 505, 514–16

judicial concepts, 507–9

definition, 101, 377

income payment orders, 283

income tax

alignment with CGT rate, 385

charity exemption, 952, 953–4, 955

dividends, 377, 378, 379

friendly societies, 959

individuals, 375–7

modernisation, 417

overview, 375–83

pre-owned assets, 393

tax avoidance, charity reliefs, 954–15

trusts, 378–83

anti-avoidance provisions, 381–3

beneficiaries, 380–1

dividends, 378, 379

income or capital, 383

savings, 378

small trusts, 379

trustees, 378–80

vulnerable beneficiaries, 377, 380–1

independent schools. See education

industrial relations

charitable status, 1001

interim injunctions, 774

pension schemes and, 670–1, 677–8, 782,

710

Industrial Revolution, 45, 922–3

inflation, investment and, 469–70, 477,

497

inheritance tax

agricultural property relief, 411

basis, 103

business property relief, 402, 411

chargeable transfers, 391

cumulation principle, 390

definition of settlement, 374, 376

discretionary trusts and, 94, 291, 533

exempt transfers, 391, 959

charities, 391, 957, 959

house prices and, 392

insurance, 379

interest in possession trusts

meaning, 395–401

post-2006, 406

pre-2006, 395–401


nature of tax, 389–90

origins, 388–90

overview, 388–414

perpetuities and, 321

PETs, 391, 392, 394, 403, 406

disabled trusts, 406

post-2006, 406

reservation of benefit, 392

post-2006 trusts, 406–8

18–25 trusts, 407

anti-avoidance, 407–8


disabled trusts, 406–7

exceptional cases, 406–7

immediate post-death interest trusts, 407

policy conundrum, 407–8

retrospectivity, 412

pre-2006 trusts

anti-avoidance, 404

interest in possession trusts, 395–401

PETs, 403, 404, 406

relevant property, 401–6


rates, 390

relevant property

definition, 401

periodic charges, 402–3, 404

regime, 385, 390, 393, 399–406

termination of trusts, 401

revenue from, 409

settled property, 393–5


personification, 393, 401

post-2006, 406–8

pre-2006, 395–406

tax avoidance, 392–3


inter-spouse transfers, 392–3, 413

post-2006, 406–7

pre-2006, 403

transfers of value, 391

value transferred, 391







1100 Index

injunctions


breach of trust, 776

charity fund-raising, 1070

discretion, 770

equitable remedy, 770–86

fraud and, 714

freezing orders, 776–82

interim injunctions, 771–6

adequacy of damages, 773, 774, 775

American Cyanamid, 772–6

balance of convenience, 772, 775

freedom of expression and, 775–6

labour disputes, 774

prima facie rule, 773, 774

strength of cases, 775

mandatory injunctions, 770–1

permanent injunctions, 771

prohibitory injunctions, 770

quia timet injunctions, 771

search orders, 776–7, 783–6

securing assets, 776–86

types, 770–1

insolvency


consumer prepayments and, 797–83

corporate rescue, 831

defrauding creditors

intentions, 293–9

law reform, 291

transactions at undervalue, 293–4,

298–303

transactions with intent to, 293–302

equity and creditors, 851

exempt assets, 281–2

family homes and, 285–8

family trusts and, 271–305

protective trusts, 272, 275–85

public policy, 271–5, 290–1

safeguarding settlors’ property, 291–305

income payment orders, 283

law reform, 273

matrimonial property and, 284


pari passu rule, 10, 293

pension entitlements and, 284–5,

680–1

remedial constructive trusts and, 845–50

secured and preferential creditors, 796

settlors


defrauding creditors, 293–303

safeguarding property, 291–305

subrogation and, 745

tracing, 725, 729, 740

trust conditions and, 269

trustees, 715

remedies against third parties, 569

separation of property, 795–6

undiscoverable claims, 830

use of trusts against, 6, 8, 10

wrongful trading, 300

Institute for Fiscal Studies, 100

insurance

bonds, 469–708

charities, 1078

inheritance tax liability, 379

subrogation, 740

tracing, 725–6

trust property, 434

inter vivos gifts

creation of trusts, 125

completion, 137–45

estate duties and, 93–4, 388, 389

IHT. See inheritance tax

investment, impartiality, 510–12

settlors as trustees, 535

tax avoidance, 77–8, 93–4, 107–8, 138–40,

372

interest in possession trusts

inheritance tax

lifetime gifts, 409

meaning, 396–402

post-2006, 406

pre-2006, 395–402

nature, 371

statistics, 108

international law, trusts and, 21–3

investment

authorised investments, 475, 476,

478

extension, 511, 592

improper sale, 582

best interests of beneficiaries, 467–8, 492,

696

business, licensing, 495

charities, 1040–1

clauses

interpretation, 478–9, 490–1

model clauses, 479–80

variation, 490–1

complexity, 468






1101 Index

definition, 479–80

delegation

2000 Act, 460, 520, 524–5

law reform, 519

model, 530

diversification, 481–2, 483

exclusion clauses, 590

pension funds, 679

duty of care

advice taking, 492, 493

standard investment criteria, 492–3

statutory duty, 463, 492

failure to invest, 582–3

gilts, 470–1, 474

historical instruments, 45–8

impartiality. See impartiality

industry v firm risks, 481–2

inflation and, 470–1, 476–7

judicial intervention, 533

markets, 469–73

overview, 466–518

pension funds. See occupational pension

schemes

policies

caution, 466, 473–8

historical development, 473–8

impact, 466

income and capital, 468

modern portfolio theory, 468, 480–4,

502–5, 514

non-financial criteria, 468, 484–9


powers

2000 Act, 427, 479, 490–6

deed restrictions, 490–2

general powers, 490

restricted powers, 323

safeguards, 492

scope of statutory powers, 490–1

statutory default powers, 477–8, 490

varying investment clauses, 491–2

protection from excessive loss, 468

returns

ethical investing, 489

evidence, 473–4, 476

savings, 469–71

social investing, 468, 484–9


stock market, 469–71, 474


2000 Act, 502–5

as investors, 495–9

as shareholders, 499–500

compensation, 583

exemption clauses, 466

set-off, 505

small family trusts, 501–2

types, 469–73

investment trusts, 19–20, 471, 472

Ipsos Mori, 961, 1055

Iraq War, 1031

Ireland, charitable status, 968

Ironside Community Trust, 960

Isle of Man, 87, 88

James I, 43, 64

Jersey, tax avoidance in, 348–52, 374

Jones, Gareth, 806, 830, 920, 1023

judicial control of trusts

beneficiary principle and, 257, 258, 260

change, 208

guidance to trustees, 589–590

litigation costs, 705–6

morality, 533



public policy and, 209

relief from trustee liability, 599–601

scope, 208, 532

trustees’ exercise of discretion, 533, 543–68

judicial trustees, 431

Kahn-Freund, Otto, 609

Kay, John, 98, 99, 101

Kayford trusts, 797–802, 830, 850

keep open covenants, 787

Keeton, George Williams, 273, 276, 289, 423–4

Keith Report, 79

Kessler, James, 500

Keynes, John Maynard, 372

Keynesianism, 96

King, Mervyn, 98, 99, 101

Knightley, Philip, 81–2

Kramer, Ralph, 1031

Kristol, Irving, 958

laches, 601–2

land

See also family homes

alternative wealth-holding, 45–7

applications to sell trusts of land, 286

associations, 887






1102 Index

land (cont.)

charity transactions, 1040–1

co-tenancies, 9

contracts for sale of land

equitable interests, 120

specific performance, 788–9

creation of trusts

completion, 146

declarations, 607

inter vivos gifts, 136, 149

delegation of trustees’ powers, 524

to beneficiaries, 521, 529

devises, 41–2, 367

feudal tenure, 36–9, 41–2, 43, 57

investment

historical prohibition, 480

property development, 483

statutory trustee powers, 490

married women and trusts, 54–7

mortgages. See mortgages

perpetuities, 316


seisin, 36, 38, 41


Landry, Charles, 933

Langbein, John, 481, 482, 871

Law Society, 161, 595, 596, 617, 857, 858, 879

Lawson, FH, 210

Lawson, Nigel, 384

Leach, Barton, 320, 321

leases

assignment, 140

charities, 1042

equitable leases, 120

keep open covenants, 787–8

renewal, fiduciaries, 27, 862

Leat, Diana, 1078

Lee, Natalie, 411

legacies

devises, 41–2, 365, 920

legatees, equitable ownership, 18

to associations, 885–98

to charities, depriving families, 920

legitimate expectations, 33, 565,

660–1


Leukaemia and Cancer Society Fund

(Lu-Can), 1072

Levin, Bernard, 82–4

Lewin, J, 3, 4, 5, 576, 587

Lewis, Jane, 652, 653

Lewis, Juliette, 984

Lewis Group, 690

liberalism, 62, 190

libraries, 979

liens, 720, 727, 728, 740, 819, 881

life interests

inheritance tax, 393

investment rules, 515–17

land, delegation of powers to beneficiaries,

529

protective trusts and, 275–6

taxation, 77, 323, 386

lifetime gifts. See inter vivos gifts

limitation of actions, 599–601

liquidations, trust property and, 795

loans. Seecredit

local government

co-ordination of local charities, 1045–6,

1054–5

elderly care and charities, 1033–4

public collections certificates, 1071

reasonableness, 565

stock, 469–70, 475

swap agreements, 29–31

locus standi, charity proceedings, 1065

London Stock Exchange, 138, 519,

526

Long Term Capital Management, 473

lotteries, 101, 938–9, 961

Lovell, PA, 371

McBarnet, Doreen, 113

McCartney, Paul, 107

McCulloch, John Ramsay, 98

Maclaine, Shirley, 984

maintenance

application of income, 367–8

availability of income for, 366–7

benefits to settlors, 370

contrary intentions, 364, 368

destination of accumulated income, 367–8

discretion, 367–8

jurisdiction, 331, 364

non-minors, 368

powers, 365–70

assessment, 368–9

paternalism, 367, 369, 370

scope, 324

statutory powers, 434

statutory power, 365–70

tax advantages, 369






1103 Index

trustees’ duties, 432


Maitland, FW, 1, 2, 4, 16, 21, 28, 60, 117, 851,

898

Malthus, Thomas, 923

Mareva injunctions. See freezing orders

Margaret Thatcher Foundation, 1030

marriage

See also spouses

‘common law marriage’, 649

public policy protection, 305–6, 310

trust conditions, 309

marriage settlements, 181–2, 188–90, 279, 292,

294, 295, 336

married women

1882 Act, 609–10

dowers, 54


property, 609–10

strict settlements, 53, 54–7

Marsh, David Reginald, 476

Martin, Jill, 543, 943, 1009

Mason, Anthony, 67–8

matrimonial property

common law, 609

equal division on divorce, 610–11

implied trusts and, 608–15

insolvency and, 284

law reform, 611–12, 613

married women, 609–10

ongoing marriages, 612–13

separate property, 609–10

unmarried couples, 613–14

Matthews, Paul, 265, 352

Maudsley, RH, 151, 322

Maxwell saga, 678–9, 682, 713, 729

Meade Report, 99, 101, 375, 376

mediation, 1066–7

medical research charities, 939

Mee, John, 660

Megarry, RE, 218–19, 277–8

mental capacity, 120

Merrill Lynch, 504

Middle Ages, 35, 37–41, 55

migration of trusts, 350–2, 374

Miles, Joanna, 651

Millett, Peter, 67, 568, 580, 711, 713, 723, 809

Milsom, SFC, 35–6, 208

minors



inheritance tax, 403–4, 407

trustees, resulting trusts, 429

Mirrlees, James, 100–2

mistakes, trustees, 549–54

Mitchell, Charles, 740

money laundering, 713, 745

Monroe, Hubert, 72, 403–4

Moore, Francis, 922

morality

charity, 913–14

commercial contracts and, 876–9

Malthus, 923

remedial trusts, 34–8

trusts, 20, 61, 62, 535, 692

Victorian charity, 923

Morgan, J, 77–8

Morris, JHC, 320, 321

Morse, Geoffrey, 383

mortgages

family homes

constructive trusts, 650

ownership issues, 605–6

payments, 653

resulting trusts and, 625–6

fraud, 713

trustee investments, 475, 494, 495–6

wasting assets, 482

mountain rescue, 990

Mulgan, Geoffrey, 933, 965

Murphy, WT, 400

museums, 972, 979

Myners Report, 677, 679, 685–6

Nadir, Asil, 713, 749

Nairne, Patrick, 1031

Nathan Report, 930, 934, 1036

National Audit Office, 426, 498, 1036, 1056,

1067, 1074

National Coalition of Anti-Deportation

Campaigns, 939

National Council for Voluntary Organisations

(NCVO), 937, 965, 1066–7

National Criminal Intelligence Service, 767

National Federation of Spiritual Healers,

990

National Health Service, 1003, 1019

National Lottery, 938–9, 961

National Playing Fields Association, 1004

National Savings, 469–71

National Trust, 924, 1037, 1079

negligence. See torts






1104 Index

New Zealand

charitable purposes, 968

cohabitation, home ownership, 662, 664

constructive trusts, 28


Newby, Howard, 962

NHS Trusts, 62–3

Nicholls, Lord, 689, 743, 744, 746, 753, 754,

755, 756, 759

Nobles, R, 692

Nolan, RC, 252

nominees, 6, 431–2, 526

non-domestic rates, 956

non-express trusts. See implied trusts

Nottingham, Lord, 44, 54

NSPCC, 924, 996

Nuffield Foundation, 961

Nuffield Health, 1019

nuisance, 790–1

Oakley, AJ, 155


occupational pension schemes

administration, 683–709

balance of power, 709–10

changes, 709

closed schemes, 674, 675, 710

contribution holidays, 691, 694

control, 690–709

death in service benefits, 220–1

deferred pensions, 675

deficits, 691, 699


discretionary trusts or mere powers, 220–1,

243

dispute resolution

court actions, 708–9

internal, 706


Pensions Advisory Service, 707

Pensions Ombudsman, 706, 707

Regulator, 707–8

early leavers, 675, 699

employers’ rights and duties, 694–6, 701–2

equal treatment, 679

Financial Assistance Scheme, 680

financial profile, 676–7

freezing, 708

future, 711–12

Goode Report, 679, 682, 705, 710

governance, 704–9

industrial relations and, 670, 677–8, 682,

711

insolvency of employers, 284–5, 679–80,

703–4

investment

delegation, 684, 685–6

discretions, 685–7

diversification, 684

economic volatility, 691

overview, 683–90

Pensions Act 1995, 684–90

policies, 683–4

self-investment, 681, 690

social investing, 484–5, 687–90

statements of principles, 686

surpluses, 690–4

voluntary principles, 686

loss of capital, 690–1

macro-economic impact, 671

Maxwell case, 678–9, 682

members’ rights, 701–3

contract terms, 704

information, 704–6

mergers, 702

minimum funding, 680

money purchase schemes, 674

Myners Report, 677, 679, 685–6

open schemes, 674

ownership, 690–4, 695–6

Pension Protection Fund, 680, 707

Pensions Act 2008, 711–12

performance, 674–5

Registry, 674

regulation, 677, 679–90, 709–12

Regulator, 703, 704, 705, 706,

707–8

security, 679–80, 710

significance, 672–9

statistics, 672

surpluses, 690–4, 695


discretion, 705–6

insolvency of employers, 703–4

members’ rights, 701–2

ownership, 691–4, 904–6

refunds, 703

valuation, 690–1

winding up schemes, 697

taxation, 677, 680, 690, 691

trust law and, 10, 670–2, 679–80, 694–5,

711–12






1105 Index

trustees

conflicts of interest, 681–3, 689, 699–700,

710

custodian trustees, 430

delegation, 529, 684, 685–6

discretions, 563, 685–6, 705–6

duties, 696–9

duty of care, 687

expertise, 684–5

insider trustees, 689

liability, 504

majority decisions, 687

member-nominated, 682, 685, 686, 708,

708–9

supervision, 708

valuation, 689–90

welfare role, 671, 672–6

winding up, 675, 697–9, 702, 708

OEICs, 472

Office of Fair Trading (OFT), 802

Official Solicitor to the Supreme Court, 422

offshore trusts

accountability, 254

appointment of non-resident trustees,

538–9


CGT liability, 386

conflict of laws, 352

deemed gains, 374


disposal of beneficial interests, 374

exchange controls and, 374

migration charges, 374


protectors, 534–5, 545

purpose trusts, 265, 373

tax havens, 81, 87, 110, 245, 374–5

variation of trusts and, 347–50

Ogus, Anthony, 802

oil embargo (1973), 481

old age, charitable status and, 966, 996

Odstock Private Care, 1021

ownership. See property rights

OXFAM, 1027, 1030, 1037

Paciocco, D, 847–9

Paling, Dennis, 598, 599

Parry, NDM, 439

partnerships

fiduciary relationships, 835, 836

investment vehicles, 45

secret profits, 868

vicarious liability, 768–9

passing off, 784, 1056

Pearce, J, 615, 617, 623

pensions

See also occupational pension schemes

Pensions Credit, 672

personal pensions, 672–4

SERPS, 672

stakeholder pensions, 673

state pensions, 672

perpetuities

balance of interests, 315, 319

bequests to associations, 887

charity exemption, 940–3

debate, 315

justification, 355

land law, 316

law reform, 318, 319, 320–2

origins of rules, 44, 315

overview, 316–22

period, 318

public policy, 267, 316

rule against accumulations, 319

rule against inalienability, 319, 900

rule against perpetuities, 318–19


personal representation

self-dealing, 453

trusts or, 17–18

Pettit, DM, 252

Pharoah, Cathy, 962

philanthropy

See also charities


definition, 913

forms, 913–14

legitimation of social subordination,

962

Middle Ages, 914

moral ambiguity, 913–14

politics of charity, 1031–2

Tudor period, 921–2

welfare state and, 930–4

Phillips, WA, 220–1

Phillips of Sudbury, Lord, 1022

Picarda, Hubert, 1065

Pickard, M, 116

Pinson, Barry, 80

Piska, Nick, 646

Plowden Report, 96






1106 Index

political activities and charitable status

anti-vivisection, 1024–6

assessment of principle, 1028–32

campaigning, 1026–8

definition of political, 1031

human rights, 1023, 1025

organisational fission, 1027

overview, 971, 1023–32

paternalism, 1027

poverty relief, 974

practice, 1026–8

scope of principle, 1023–5


political parties

educational charities, 981

gifts to, IHT exemption, 391, 959

no charitable status, 1023–4

Pollock, Allyson, 1020

Pollock, Frederick, 52, 53

Polly Peck, 497, 713, 748, 782

poor law, 923

population theories, 923

Posner, Richard, 354, 482

Potter, DC, 403–4

poverty relief

absolute and relative poverty, 974–6

charitable status, 966, 974–8, 1009–10

cy-pres schemes, 976–7

distressed gentle folk, 976


social security and, 977–8

powers

advancement. See powers of advancement

appointment. See powers of appointment

bare powers, 212

collateral, 215

discretions and, 543–4

fiduciary powers, 212, 215

fraud on the powers, 212

hybrid powers, 556


meaning, 209

terminology, 215

trusts and powers compared, 209–16, 265

trusts powers and, 214–15, 224

powers of advancement

advancement or benefit, 358–64

altering beneficial entitlement, 357

class, 363

delegation, 362

discretionary powers, 355, 356


meaning, 355

misapplication of funds, 356–7

overview, 355–64

Pilkington case, 358–61

presumptions, 311–16, 624

resulting trusts or, 624

scope, 324

statutory limits, 357

statutory powers, 355–8, 433

tax avoidance, 358–61


variation of trusts or, 357–8

powers of appointment

categories, 210

default of appointment, 210, 214–15

discretionary powers, 210, 212, 355

discretionary trusts or, 212–14, 216–30,

238–43

fraud on the powers, 212

general powers, 210, 243

hybrid powers, 210, 243

meaning, 209–10

non-delegation of testamentary powers, 245

pension funds, 243

special powers, 210, 243

terminology, 210, 215–16

trustees, 210–12, 432

powers of attorney, 529

pozen R, 481–2

Prentice, D, 438

prepayments. See consumer prepayments

Primarolo, Dawn, 393, 407–8

primogeniture, 38

privacy and family life

Convention right, 288, 308–9

family home and insolvency, 287

privatisations, 426, 1031

Probert, Rebecca, 651

proceeds of crime, 740, 766–7

profit

See also secret profits

fiduciary relationships and, 833–4

trustees’ no profit rule, 420, 435, 437, 833–4

property rights

association assets, 898, 903–12

attribution of beneficial ownership to trust

funds, 110–12

ECHR, 309

erga omnes rights, 249

family homes. See family homes






1107 Index

functions of ownership, 105


pension funds, 690–4, 906–8

property as security, 417

property-power, 104–5

public policy and, 415–16

remedial constructive trusts and,

845–8

splitting by trusts, 3, 13, 15, 73, 180

insolvency, 795–6

nominees, 431–2

taxation issues, 371–4, 410

tracing and, 881

trusts and wealth, 60–2

protective trusts

application of income, 280–1

assessment, 303

Canada, 283–4, 288

Cork Report, 281–4, 291

determinable interests, 270–1, 275–6


discretionary trusts, 275–6, 280–1

forfeiture, 276, 278–9


Insolvency Act 1986, 281–6

mechanism, 271

origins, 50, 275–6

overview, 275–85

power relationships, 61

settlors’ insolvency, 292, 300

structure, 276

Trustee Act 1925, 276–8

overriding section, 279

US v English approaches, 288–91

variation, 344, 346

Victorian legal formalism, 291

protectors

accountability, 534–5

offshore trusts, 534–5

purpose trusts, 263, 264–5

role, 253, 534–5

trustees’ discretion and, 545

public appeals, 950–1

public authorities

charities, 918

courts, 308, 918–19

human rights obligations, 308, 919–20

trustees and, 308

public collections, 1068

Public Concern at Work, 1003

Public Guardian, 429

public morality

conditions precedent, 267

trust creation and, 266

public opinion, charities, 917, 969, 1055,

1068

public policy

charities, remuneration of trustees, 442

conditions precedent, 268–70, 305

covenants and, 187–90

creditors’ protection, 267

determinable interests and, 270–1, 306

discrimination and, 306–9

exclusion clauses and, 593–4

family trusts and, 418

fiduciary law

commercial contracts and, 876–9

regulatory context, 879–81

standards of conduct, 874–6

fraud and trusts, 310–16

freedom of disposition and, 268, 309

freedom of testation, 309–10


illegality and, 310–16

insolvency and trusts, 271–5

judicial approach to, 209

meaning, 267–8


overriding considerations, 267

perpetuities, 267, 316–22

protection of marriage and family, 305–6

public conscience test, 315

public morality, 267

statutory interpretation and, 94

taxation and, 95–103

charity reliefs, 958–9

US spendthrift trusts and, 289

wealth redistribution, 104

v preservation, 417–18

Public Trustee

audits of contested accounts, 555–6

campaign for, 424

creation of office, 424, 425, 428

critical reports, 428–9, 498

declining role, 425, 428

fees, 441–2, 443

functions, 428–9

mental health functions, 429

origins, 50

privatisation, 426

reorganisation of Office, 429

thalidomide funds, 498






1108 Index

purpose trusts

beneficiary principle and, 254–65

bequests to associations, 887, 898

enforcers, 265–6

offshore trusts, 265–6, 373

rule against inalienability, 316, 900

Quistclose trusts

alternative reasoning, 809–16


case reasoning, 804–7

classification, 815–16

corporate salvage plans, 817

enforceability, 807–9, 814

fairness, 830

registration, 830

remedial constructive trusts and, 816–17,

847

resulting trusts and, 810–11

Twinsectra v Yardley, 810–11, 813, 814

undiscoverable claims, 830

race discrimination

by charities, 959–60

charities promoting racial harmony,

1001

cy-pres schemes and, 1045

public policy, 306–8

railway companies, 475

reasonableness

exclusion of liability clauses, 595

public law, 565–6

reasonable financial provision, 309–10

statutory duty of care, 463–4

trustees’ decisions, 549–54, 567

records, trustees’ duties, 555–6

recreational charities, 1004–6

Red Nose Day, 913

relief, feudal casualty, 37

religion



cloistered nuns, 986–8, 1015

emergent liberalism, 982–3

meaning of religion, 983–5

means of advancement, 989–90

neutrality, 1029–30


charities, 936

ECHR right, 919

freedom of religion, 982, 985, 1025

public policy and, 306–7, 308


remedies

against third parties, 568

common law, 713–14

compensation. See compensation

consumer prepayments and insolvency,

797–803

equitable remedies, 714–16

accounting for profits, 881

breach of fiduciary duty, 881–5

bribes, 881–4

constructive trusts. See constructive

trusts

damages, 788–94

discretion, 714

injunctions. See injunctions

liens, 720, 727, 728, 740, 819, 881

resurgence of interest, 713

specific performance, 714, 715, 786–8

subrogation, 740–2, 883


injunctions, 569

liability to account, 569, 881, 884


proprietary remedies. See tracing

protection of vulnerable, 886


tracing. See tracing



remuneration of trustees

acceptance fees, 440

administration fees, 440

categories of trustees, 438–9

charities, 442, 1076

commissions, 451

conflicts of interest, 436–7

contractual agreement with beneficiaries,

442

corporate trustees, 428, 437, 438, 446

direct remuneration, 437–47

directors’ fees, 447–51

expenses, 438

income collection, 441

indirect remuneration, 447–51

inherent jurisdiction, 444–7, 450–1

law reform, 426–7, 438–9

lay trustees, 439, 447

litigation work, 444

LRC report, 438–9






1109 Index

no profit rule and, 835–6

professional trustees, 437, 438

standards of care and, 461–2

statutory provision, 422–3, 436, 442–3

trust instrument authorisation, 440–2

withdrawal fees, 442

reservation of benefit, IHT, 392

reservation of title

agency relationship, 824

clauses, 817–19

commercial framework, 819–20, 831

Cork Report, 819, 820, 830–2

drafting clauses, 829–30

effect of judicial response, 831–2

effect of successful clauses, 830

enforceability, 820

equitable tracing, 818–19, 820–9

extensions, 817, 818, 827

fiduciary relationship, 820–3, 825, 830, 848

freedom to contract, 817–18

law reform, 820

mixed goods, 824–9

notice, 819, 831

overview, 817–32

proliferation of clauses, 819

registration, 819, 824, 831

Romalpa clauses, 818–22, 830–2

unsecured creditors, 817


Resler, Henrietta, 339

restitution

See also unjust enrichment

coherence, 31

English development, 30, 31

imputed trusts, 28–33

recipient liability, 743, 751–7

terminology, 32

Restorative Justice Consortium, 995

restrictive covenants, 791

resulting trusts

associations, dissolution and, 903, 904,

905–6, 910–11

automatic, 23–4

categories, 23–4

constructive trusts or, 24–5, 607–8

death in service benefits, 220

family homes, 193, 311, 624–7

illegality and, 310–12

intentions and, 193, 194–6

minors as trustees, 427–8

presumption, 23–4, 311–15, 607

principles, 193–4

Quistclose trusts and, 804–16

requirement, 624

scenarios, 23–4, 192–3, 194

scope, 30, 32

secret trusts, 148

taxation, 220

tracing, 844–5

uncertainty, 714

Vandervell litigation, 193–205

Revell, Jack, 107, 109, 353, 591

Rickett, Charles, 816, 851

Rix, Brian, 1073

road safety, 990

Robinson, Ann, 86

Robson, MH, 109, 110–12

Romalpa clauses, 818–24, 830–1

Rossiter, CJ, 284

Rotherham, Craig, 829

Rowley, Charles, 802

Rowntree Foundation, 961

Royal National Institute for the Blind, 959

Royal Star and Garter Homes for Disabled

Sailors, Soldiers and Airmen, 1050–1

RSPB, 997

RSPCA, 997, 1073, 1079

Rudden, Bernard, 210

rural regeneration, 991

salman, 37

salvage jurisdiction, 329, 332

Samuels, A, 563

Sandford, Cedric, 78, 84–5, 86, 94, 95, 96, 97,

107, 388

savings

income tax, 377

types, 469–70

scholasticism, 268

science, charitable status, 966, 992

scientology, 984–5, 988–9

Scotland

Charity Tribunal, 1043

cohabitation, family homes, 664

perpetuities, 321

Scott, Austin, 57, 58, 283, 437, 459, 834, 839,

850

Sealy, LS, 836, 837, 853, 874

search orders

civil liberties and, 783, 785

consent, 785

ex parte applications, 783, 784






1110 Index

search orders (cont.)

importance of disclosure, 784–5

injustice, 783, 784

miscarriages of justice, 784

nuclear weapon, 777

objective, 783

overview, 783–6

potential destruction of property, 784

role, 713–14

safeguards, 783–6

terminology, 776–7

undertakings in damages, 785

secret profits

Boardman v Phipps, 863–71


contemporary interpretation, 871–4

development of rule, 863–71

fiduciaries, 854, 862–74

Keech v Sandford, 862–3, 874

trustee liability, 13

secret trusts, 28

anachronism, 147

certainty of intentions, 167–73

communication, 148, 150, 153, 160

constructive trusts, 27, 157

dehors theory, 154

fraud and, 149, 150–2, 154, 158, 159

fully secret trusts, 148–50, 153, 155,

160

implementation method, 148–9

standard of proof, 149–50

half-secret trusts, 150, 151

resulting trusts or, 192–3

juridical nature, 154–5, 157

meaning, 146

motivation, 147

mutual wills and, 156

origins, 147

theoretical basis, 150–4

validity, 146–60

Wills Act and, 158–60

securities, registration, 806–7, 819

securitisation, 472

seisin, 36, 38, 41

self-dealing, 452–9, 600, 862

self-incrimination, 783, 784–5

Sellar, WC, 84

Selznick, Philip, 899

SERPS, 672

set-off, 504–5, 830

settlors

appointment of trustees, 535

CGT liability, offshore trusts, 385


conditions of gifts, 5, 267–70, 305, 345

employers, 670–1, 694–6

IHT avoidance, 393–4

income tax avoidance, 381–3

insolvency


intention to defraud, 295–9

law reform, 293

safeguarding property, 291–305

transactions at undervalue, 295–6, 300–5

transactions intending to defraud

creditors, 293–300

intentions

See also variation of trusts

fidelity to, 323, 324, 328, 354

investment policies, 506

tax avoidance motives, 75–8

trust creation. See creation of trusts

removal of trustees, 535–6

retention of control, 14, 545

rights, 14

settlor-interested trusts, 374

trustees’ discretion and, 544–5

sex discrimination, 959–60

Shaffer, TL, 75

sham intentions, 164

sham trusts, 15, 244–5

Shanley, Mary Lyndon, 609

shares

as investment

returns, 473–4

statutory powers, 475–7, 490–1


types of investment, 469–73


completion of procedures, 137–44


CREST, 138, 519, 526

mobility, 373

nominees, 6, 431–2


registration, 137–44

taxation of dividends, 377, 378, 379

tracing, 726

Shattuck, Mayo Adams, 46

Shelter, 931

Sheridan, LA, 155, 159

Simmonds, NE, 418






1111 Index

Simon, Jocelyn, 644

Simonds, Lord, 334, 338

Simons, Henry Calvert, 94, 101

Simpson, AWB, 316

Sinfield, Adrian, 415

slavery, 924, 1028

small trusts

taxation, 376, 379


Smith, Adam, 97, 113, 933

Smith, Lionel, 718, 723, 755–6, 757

Smithson, J, 650, 652

Snell on Equity, 155, 158, 437, 519

social class, 339, 363, 962

social cohesion, 1034

Social Fund, 977–8

social security, fraud, 311–12

socially responsible investment, 468, 484–9

solicitors

Code of Conduct, 857–8, 879



mergers of firms, 856, 857–8


professional trustees, 48

remuneration as trustees, 440–1

commissions, 451

litigation work, 444

use of trusts, 6

South Sea Bubble (1720), 475

specific performance

contempt of court, 787

contracts for personal services, 786

discretionary nature, 714, 786

equitable remedy, 714

exceptional remedy, 786–7

keep open covenants, 787–8

spendthrift trusts, 289–91, 328

sports


charitable status, 966, 967, 993–4

clubs, tax exemptions, 959

recreation and, 1004

spouses

See also marriage

defeating spouses’ claims, 310

IHT avoidance schemes, 392–3, 412

reasonable financial provision, 310

spectral spouses, 345

stamp duty, 127–8, 133–4

State Second Pension, 672

statutory interpretation

law-making function, 92

literalism, 79–80, 85

objective interpretation, 85

parliamentary materials and, 85–6

policy objectives and, 94

purposive interpretation, 91, 92

substantive formalism, 334

STEP, 595

stepchildren, 382

Stevens, Robert, 333–4

Stoppard, Tom, 82

Strategy Unit Report

accountability, 965

campaigning charities, 1026, 1030

charity brands, 1034

charity fund-raising, 1068

charity mergers, 1054

Charity Tribunal, 974

modernisation agenda, 1044

public benefit of charities, 992, 1021–2

public trust, 1037

religion and charity status, 984, 989

trust in charities, 1055



sub-trusts, 14, 131–2

subordination trusts, 10

subrogation, 740–2, 883

Sugar, Alan, 107


suspended trusts, 175–6

Swadling, William, 196, 625, 667

swap agreements, 29–31, 197

take-overs, 6

Tanner, Sarah, 962

tax avoidance

anti-avoidance provisions, 381–3


complexity, 374–5, 415–17

GAAR, 91, 113, 115, 417

IHT, 404, 407–8

income tax, 382–3

law reform, 375

appointment of new trustees, 539

charity reliefs, 954–5

creative compliance, 113

debate, 78–86

definition, 78–86, 95

disclosure of schemes, 113–14






1112 Index

tax avoidance (cont.)

discretionary trusts, 77, 216, 410

dynastic trusts and, 75–7

Furniss v Dawson, 87–90

inheritance tax, 390–1

inter vivos gifts, 77–8, 93–4, 107–8, 138–40,

372

judicial responses, 86–93

changes, 350

ideology, 92, 95

law reform and, 376

lawyers v economists, 78–86

maintenance and, 368–9

mitigation and, 92–3

off-the-peg schemes, 87, 412

offshore trusts, 81, 87, 109, 373–5

powers of advancement and, 358–64

role of lawyers, 112

settlors’ motivations, 75–8

stamp duty, 127–8, 133–4


law-making function, 92

literalism, 79–80

parliamentary materials, 85–6

policy objectives, 94


uncertainty, 92

tax evasion and, 79–80

termination of trusts, 325–7, 353

trust motivation, 62–3, 78–95

variation of trusts, 324, 329–344, 346–54

tax evasion, 79–80

Tax Law Review Committee, 91

Tax Law Rewrite Project, 99, 101, 114, 377, 954

tax planning

family companies, IHT, 410–11


misjudgements, 551–4

mobility, 373

time, 411–12

trusts and, 371–75

taxation

See alsospecific taxes

avoidance. See tax avoidance

capital, 102–3

income v capital, 101–2

transfers, 100, 102–3

charities. See charities

complexity, 98–9

creation of trusts and, 118

direct and indirect, 100

discretionary trusts or powers of

appointment, 220

economics and, 99

electoral considerations, 96

evasion v avoidance, 79–80

exemptions, 959

charities. See charities

ideology, 100

life estates, 77, 318, 323, 386, 392

moral purposes, 96

neutrality, 99, 414–15, 417

pension funds, 674, 677, 678, 690, 691

principles, 96–9

certainty, 98–9, 112

horizontal equity, 98

neutrality, 99

vertical equity, 97, 103–4

public policies and, 95–103

purposes, 95–6

retrospectivity, 412

simplicity, 415–17

sources of revenue, 99–100


literalism, 79–80

parliamentary materials, 85–6


structure, 99–103

trusts, 72–4


complexity, 374–5

harmonisation, 376

issues, 371–5

law reform, 375–6

parity, 413–14, 418

personification, 376, 393, 401

simplification, 376

small value trusts, 376, 379

terminology, 375, 377

transparency, 376

vulnerable beneficiaries, 376, 377, 380–1,

486–7

wealth redistribution, 73–4, 97, 103–8

Taylor, Jean, 652, 653

Tennant, Rosalind, 652, 653

termination of trusts

IHT charge, 401–2

justification of rule, 327–8

limits of rule, 327–8

premature termination rule, 325

Saunders v Vautier, 49, 61–2, 248, 325, 327

tax planning use, 328, 352–3






1113 Index

testamentary trusts

dynastic trusts, 76, 77, 304, 321

history, 47

remuneration of witnesses, 442

statutory limits, 309–10

validity, 124, 145–60

donatio mortis causa, 157–8, 159

formalities, 146

mutual wills, 155–7, 159


variation. See variation of trusts

thalidomide funds, 498

Thatcher, Margaret, 410, 932, 1030

Thomas, Geraint, 399–401, 409, 414, 417–18

Thomas, Meryl, 687

Thompson, EP, 363, 983

Tiley, John, 79, 91–2, 115, 374–5

Timmins, RK, 109, 111–12

Titmuss, Richard, 372–3, 930

torts

boundaries, 32

fiduciary duties and, 584–8, 833–5, 839

limitation of actions, 599

Townsend, Peter, 74

tracing

clean substitutions, 717, 723

commercial context, 795

common law, 720, 721–24

contracts v trusts, 17

equitable remedy

limits, 731–6

mixed funds, 725–31

overview, 725–40

personal claims, 735, 738–40

fiduciary relationship, 718–19, 819–22, 824,

841–5

fraud, 713, 719

insolvency, 722–3, 728, 740

limits, 731–8

ascertainability, 731–3

changes of position, 733–6

fairness, 733–6

good faith, 735–6

knowing receipt, 731, 733

notice, 731

meaning, 716–17

metaphysical approach, 724

mixed funds

backward tracing, 729, 739

basic principle, 725–8

limits of tracing, 731–40

lowest intermediate balance, 728–9

third parties, 729–31

trust and trustees’ property, 725–8

two trust funds, 729–31

overview, 716–40

proceeds of crime, 740

process, 719–20

proprietary implications, 881

proprietary remedy, 602–3, 738, 740

reservation of title, 817–19, 820–29

resulting trusts and, 845

scenarios, 717

technical rules, 718

unconscionability, 718

unjust enrichment, 722, 737–40

tracker funds, 473

Trade Union Congress (TUC), 678

trade unions, 678, 682, 688–90

trading trusts, 20

Trafford Community Leisure Trust, 1003

Travolta, John, 984

tricks, 5–12

trust property

bona fide purchasers, 14

categories, 4

certainty, 121




CGT definition, 383–5

enhancement, 460

inheritance tax, 391–3


protection, 460


trustees’ powers, 433

trustees’ self-dealing, 452–55

wealth concentration, 108–10

trust uses

charities, 12, 34

clubs, 11, 12

collective investments, 9–10, 12, 33


disaster funds, 10–11

family breakdown, 33

family homes, 34

finance and commerce, 33–4

pension funds, 10

preservation of family wealth, 1–2, 7–9, 33,

34, 63, 73–4

separation of benefit from control, 5






1114 Index

trust uses (cont.)

solicitors’ accounts, 6

tax avoidance, 62–3, 75–95

tricks, 5–12

trustee liability

agents, for, 464, 521, 526–8

breaches of trust, 569–71

causation, 573–5, 579, 583–4


charities, 1064–7

classification of breaches, 566–73

compensation. See compensation

delayed actions, 602

duty of inquiry, 432

equitable remedies, 13–15

exclusion clauses, 466, 533–4, 590

fraud, 593

law reform, 594–5

overview, 592–7

reasonableness, 596

failure to invest, 582–3


good faith and, 434

investment decisions, 494–500

judicial exonerations, 466

judicial guidance, 590

laches, 601–2

liability to account, 569

limitation of actions, 599–601, 602

measuring, 573–88

debate, 583–8

equity and common law, 583–8

practice, 582–3

principle, 573–83

negligence, exclusion, 422

origins, 48

personal or collective, 588–90

profitable breaches, 569, 581–2

proprietary remedies. See tracing

protection from excessive losses, 468

relief, 589–99

acquiescence, 590–2

exemption clauses, 466, 533–4, 590,

592–7

fairness, 597–9

judicial discretion, 597–9

prospective protection, 590


retired trustees, 541

secret profits, 13

statutory indemnity clause, 434, 588

surcharging accounts, 571

tracing. See tracing

unauthorised investments, 582

unauthorised profits, 569

vicarious liability, 464, 519–20, 527–9

trustees

accountability. See accountability

agents, 436

appointment, 535–9

beneficiaries’ position, 539–40

capacity, 427–8

court appointment, 538–9

importance, 420

new or additional, 536–7

non-resident trustees, 539

numbers, 427–8, 541

protectors’ powers, 253

settlors’ role, 535–6

bare trustees, 6, 431–2

charities. See charitable trusts

conflicts of interest, 435–7, 572

categories, 437

pension funds, 681–3, 689, 699–701, 704

wider principles, 458–9

consent to trusteeship, 153

contemporary profile, 425–6

corporate trustees

fees, 430

growth, 424

history, 48

remuneration, 437–9, 444–6

requirements, 429–30

statistics, 424

custodian trustees, 430–1

declarations of trusts, 123–4, 137

delegation. See delegation

discretion

beneficiaries and, 539–40

beneficiaries’ information rights, 554–64

capricious exercise, 548–9

expanding scope, 556

failure to exercise, 548

Hastings-Bass rule, 549–54, 564, 565,

567–8

improper exercise, 544–9

independence from settlors, 535–6

inherent jurisdiction, 543

judicial control, 533, 543–68

judicial guidance, 590








1115 Index


pension funds, 564, 684–6

powers and, 543–4

protectors and, 545

reasonableness, 550–3, 566

reasons for decisions, 564

surrender, 590

tax planning errors, 551–4

duties, 433–5

accounts, 13, 252, 432–3, 555–6

charities, 1075

confidentiality, 562–4

impartiality, 432–3, 460, 492

inquiry, 432–3


law reform, 426–7

management, 460–1

overview, 432–3

pension funds, 695

powers and, 433–5

records, 555–6

statutory duties, 14–15

trust property, 431–2

duty of care. See duty of care

fair dealing, 456–8

fidelity to settlors’ intentions, 323, 324, 329,

355

fiduciaries. See fiduciary relationships

good faith, 49, 434, 464

independence from settlors, 535–6

insolvency, 715

remedies against third parties, 569

separation of property, 795


judicial trustees, 431

lay trustees


standards of care, 466

liability. See trustee liability


modern model, 423

no profit rule, 421, 435

19th century cases, 436

relaxation, 835–6

nominees, 6, 431–2

pension funds. See occupational pension

schemes

power relationships with beneficiaries, 61–2

powers, 14

See also powers of appointment

19th century, 422

duties and, 432–4

fraud on the power, 696


overview, 434–5

statutory powers, 433–4

professional trustees

history, 48


standards of care, 461–2, 463–6, 594

property rights, 13

public authorities and, 308

removal, 541–2

beneficiaries’ role, 539–42

court removal, 541

protectors’ powers, 253, 534–5

settlors’ role, 535–6

remuneration. See remuneration of trustees

retirement, 541

incapacity, 537

subsisting liability, 541

self-dealing, 452–8, 601, 862

purchase of trust property, 452–4

rule, 452–3, 458

taxation

CGT, 383, 383–8

income tax, 378–80

traditional model, 420–3

decline, 423–5

fiduciary, 421

ideal types, 424

influence, 423

moral obligation, 421

no profit rule, 421, 435, 436

no remuneration, 437

non-delegation, 421

standard of skill, 421–2

Trustee Act (2000), 426–7

types, 428–30, 439

unanimous decisions, 433


trusts

categories, 23

charitable trusts. See charities

companies, comparison, 18–20

competing legal institutions, 15–20

concept, 1–3

contracts or, 16–17

creation. See creation of trusts

dynamism, 246

history, 2, 35–71

ideology, 60–2






1116 Index

trusts (cont.)

imputed. See implied trusts

internationalising, 21–3

lawyers’ device, 1

moral law, 20, 61, 62, 533, 692, 833–5

nature, 3–4, 371

non-express. See implied trusts

ownership. See property rights

personal representation or, 17–18

powers and, 209–16, 265

property. See trust property

sham trusts, 15

social contexts, 33–4

terminology, 3

tricks, 5–12

uses. See trust uses

validity, 15

versatility, 1–2, 4–12, 60–1, 62, 73

Tsunami Appeal, 914

Tudors, 41–3, 45

Turner, RW, 247

unconscionability

completion of trusts, 141–5

constructive trusts, 26, 33, 607, 660–3

accessory liability, 767

Australia, 658–60, 884–5

England, 660–1

notice, 747–8

recipient liability, 746, 751–4, 757

equity, 67–8

tracing, 716

undue influence, 33, 853–5

Ungoed-Thomas, L, 333

Unilever, 504

unincorporated associations. See associations

unit trusts, 10, 19–20, 471, 473, 669

United States

covenants to settle, 187


Great Depression, 2, 497

hedge funds, 472

income tax system, 94


remedial constructive trusts, 32

remuneration of trustees, 437

Sarbanes-Oxley Act, 861

spendthrift trusts, 289–91, 328

tax reform, 77

tracing, 734


unitrusts, 515–16

unitrusts, 515–16

universities, 972, 1033

unjust enrichment

change of position defence, 733–6

family homes, 654–8

implied trusts, 28–33, 654–8

tracing and, 722, 736–8

urban regeneration, 991

ut res magis valeat quam pereat, 224

validity presumption, 224

value added tax, charities and,

953, 955

Vandervell saga

1st stage (1958–61), 199–201

2nd stage (1961–65), 201–4

epilogue, 204–5

facts, 197–8

resulting trusts, 192–205

variation of trusts

1958 Act, 334–55

assessment, 354–5

outline, 341–44

text, 340–1

benefits, meaning, 344–7, 355

complete resettlement, 343

conditions precedent, 345–6

consent, 341–3

discretion, 341, 345, 351

exporting trusts, 347–52

interests, meaning, 341

investment clauses, 491–2

law reform process, 334–40

class, 339

LRC Report, 334–7, 338–9, 341, 354

Parliamentary debate, 324–5, 337–9

methods, 343

overview, 329–54

perpetuities and, 354–5

powers of advancement or, 358

practice, 352–4

pre-1958, 330–4

administration, 329–30

beneficial interests, 330–4

compromises, 331–4

maintenance of beneficiaries, 329, 330

protective trusts, 341, 347

settlors’ intentions, 345–7

tax avoidance, 324–5, 337–8, 347–55

Weston case, 347–52






1117 Index

Venables, Robert, 95, 113, 372, 373, 410, 415,

418

Vestey family, 81–5, 373

vicarious liability

accessory liability, 768–9

trustee liability, 462, 520, 526–8

Vincent, Howard, 424

Virgin Tracker Fund, 473

Virgo, Graham, 736–7

ViRSA Educational Trust, 992

vivisection, 1024–8

volunteers, equity and, 118–19, 142, 145, 179,

190–1

Vos, Peter de, 392

vulnerable groups, 376, 377, 380–1, 407,

886

Walker, Robert, 94, 705, 756

Wallace, Claire, 650

waqf, 37

War of the Roses, 41

Warburton, Jean, 915

Warder, C, 489

wardship, 37, 41

Waters, Donovan, 263, 421–2, 434, 435–7, 449

Watts, Peter, 885

wealth

1923–2003 UK trends, 105

definitions, 104

estate duties and, 107–8

forms, 104

historical changes, 45–7

inherited wealth, 105–7

marketable wealth, 104

preservation


redistribution and, 417–9

trust purpose, 1–2, 7–9, 33, 34, 63, 73–4

property-power, 104–5

redistribution

estate duties, 389, 419

preservation and, 417–19

taxation, 73–4, 97, 103–8

trusts and wealth concentration, 108–12

attribution to trust funds, 110–12

statistical evidence, 108–10

wealth taxes, 102–3

Weinrib, Ernest, 875

welfare state

charities and, 930–9, 977–8, 1032–5

politics of welfare and charity, 1031–2

privatisations, 1031–2

Wellcome, 961

West LB Panmure, 489

Westergaard, John, 339

Wheatcroft, GSA, 79

Whelan, CJ, 113

whistle blowing, 1061

Whitaker, Ben, 1033

Whitehouse, Christopher, 409

Wigan Leisure and Culture Trust, 1003

Williams, David, 383

Williams, Glanville, 270

wills

See also testamentary trusts

devises, 41–2, 367

formalities, 145–60

secret trusts and, 159–60

signing and attestation, 146

gifts to attesting witnesses, 442

home-made wills, 163

legacies to associations, 889–901

Middle Ages, 37

mutual wills, 155–7, 159

non-delegation of testamentary powers,

245

personal representation and trusts, 17–18

public documents, 147

Statute of Wills, 42, 43

statutory limits, 309–10

variation. See variation of trusts

Wise, Sara, 929

withdrawal fees, 442

Wolfenden Report, 931–2, 936

women, equality, 982

Woodfield Report, 1036, 1042, 1048, 1056,

1068

Woodward, H, 617, 623

Worthington, Sarah, 68, 70, 809, 823, 824

wrongful trading, 300

Yeatman, RJ, 84

Yeats, WB, 272

YMCA, 960

Zuckerman, Adrian, 771, 774, 779






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