Disposing of Property on Death

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Disposing of Property on Death

As Kenneth is the owner of the house and the shares at law and in equity, he can make Louise the beneficial owner of this property by transferring the shares, and conveying the house to her. Generally, in order to transfer shares to a beneficiary, it is necessary to use the appropriate form of transfer, and the legal title to the shares will pass on the registration of the new owner on the company's books. Where land is concerned, section 52(1) of the Law of Property Act 1925 requires that the transfer of the legal estate be made by deed, however, the facts indicate that it may be possible for Kenneth to avoid these formality requirements by the operation of the principle of donatio mortis causa.

A donatio mortis causa is a gift made in contemplation of, and conditional upon, the death of the donor. The donee's title will not come into existence until the death occurs, and until that time, the donor can revoke the gift. In Re Craven's Estate1, Farwell J set out three conditions which must be shown before it can be said that a valid donatio mortis causa exists, namely: