EQUITY AND TRUSTS
Question 1: 1000 words (50 Marks)
The Judicature Acts of 1873 and 1875 abolished the Common Law and Equity Courts and replaced them with a single High Court, whose divisions can apply both common law and equity rules and principles. The elimination of the division at the court level has led to proposals to eliminate the distinction also at the law level. According to this view, equity should not be separate from common law and the two should be fused.
Do you agree with these proposals or are you in favour of the separation?
Support your answers by appropriate references to the relevant literature.
Question 2: 1000 words (50 Marks)
In September 2021 Waqar was in hospital awaiting heart operation, which the doctors warned would be “very risky”. Fearing the worst Waqar decided to make some arrangements for his estate by drawing up a will. Waqar, who had already transferred properties to his children, also owned a number of land properties in West Yorkshire Student Copy and significant investments in bonds and shares.
He decided to set up two discretionary trusts and transfer all his remaining estate to them. From his bed in hospital, he wrote a note which he signed and placed in a sealed envelop. Waqar’s brother delivered the envelop to the solicitor’s office in the next day.
In his note Waqar wrote that he wanted the discretionary trusts to have immediate effect. The solicitor would be appointed as Waqar’s trustee for the first trust, which would be managing all his land properties. For the second trust, which would be managing Waqar’s investment portfolio Waqar wrote that he was seeking a trustee with sufficient knowledge and experience and that until that time he would be holding himself the investments as trustee.
Both trusts were for the benefit of Waqar’s poor friends and neighbours who supported him during the prolonged period of his heart problems. Waqar’s operation took place a week after his note was delivered to the solicitor’s office. The complex operation was not successful and Waqar, sadly, died in the next day.
The solicitor, who was on a holiday to Bali when the note was delivered to her office,did not read it until two weeks later when she returned to UK.
After his death Simon and Marina, two of Waqar’s neighbours who were receiving
unemployment benefits sent a letter to the solicitor asking her for financial support from the trusts as beneficiaries.
A few days later Waqar’s daughter, Ifra, sent a letter to the solicitor asking her not to give any money to Simon and Marina because the trusts were not valid, as they were lacking certainty. Ifra also claimed that the trusts were not properly constituted.You are Waqar’s solicitor and you are asked to advise Simon, Marina and Ifra on the following issue.
a) If the two trusts meet the requirements of certainty
b) If the two trusts have been properly constituted
Depending on your advice on the above issues further advise Simon and Marina if they are eligible for financial assistance from the trust.