Equity and trusts assignment Essay Example | Topics and Well Written Essays - 2500 words

Equity and trusts assignment - Essay Example His decision as to who are my old friends is to be final†; c. â€Å"I give  £20,000 to my executors to hold on trust for a period of 21 years and to be distributed in their discretion among such of the first 300 people to have crossed the Victoria Bridge on 24th October 2008 (the date of my deceased husband’s birthday) as they consider most deserving.† In order to advise Edward and Sandra of their duties in relation to the above it is necessary to examine the contents of the will to determine which elements can be regarded as valid bequests. For an express private trust to be created certain formalities must be adhered to. An express trust requires the person making the bequest to have the necessary capacity as well as adhering to the formalities. This involves consideration of the three certainties since a bequest can only be valid if the three certainties are satisfied. To be regarded as fully constituted a trust must contain all the above elements. When considering capacity the court will refer to the Family Law Reform Act 1969 s1(1) which stipulates that the person making the will must be over 18 and must be of a sound mind. In this situation there is nothing to suggest that the testatrix was not of a sound mind which would mean that the capacity requirement would be fulfilled. In addressing the formalities the court will consider whether the trust has been created inter vivos or by the will. In this case the trust comes into affect upon execution of the will and therefore the will would be regarded as creating the trust. In determining whether statutory provisions apply the court will examine the way the trust was created as well as whether the property subject to the trust relates to land or other property and whether the interest is a legal or an equitable interest. In this case it is not necessary to discuss equitable interests since an equitable interest is created where the testator does