• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

'Re Baden's Deed Trusts (No.2) [1973] Ch. 9'

Extracts from this document...

Introduction

Case note: 'Re Baden's Deed Trusts (No.2) [1973] Ch. 9' The Court: > 'The Court of Appeal' The Judges: > Sachs, Megaw and Stamp LJJ What are the relevant facts? > 1941 - Bertram Baden (Settlor), Chairman and Managing Director of Matthew Hall & Co Ltd, established trust fund of 5,000 shares in the company for officers and employees of the company. > Clause 9(a) of the deed directed his trustees to: > "Apply the net income of the fund in making at their absolute discretion grants to or for the benefit of any of the officers and employees or ex-officers or ex-employees of the company or to any relatives or dependants of any such persons in such amounts at such times and on such conditions (if any) as they think fit..." > 1943 - Settlor transferred a further 5,000 shares to the trustees and other shares were added later. > 1960 - Settlor dies. > 1962 - Executors told that trusts were void for uncertainty and claimed payment of the fund to his estate. ...read more.

Middle

Result of Appeal by the Executors: The Judges: Sachs LJ: > Executors believe the words "relatives" and "dependants" imports such uncertainty that the trust as a whole is void. > Agrees with the test laid down by Lord Wilberforce in 'Re Gulbenkian's Settlements' - "can it be said with certainty that any given individual is or is not a member of the class?" > The suggestion that this trust could be invalid because it may be impossible to prove an individual was not in the relevant class is wholly incorrect. > Considers trustees capable of coming to a conclusion in any given case as to whether or not a particular candidate could properly be described as "dependant". > Agrees with Brightman J that "the use of the expression 'relatives' cannot clause the slightest difficulty. > Held: Appeal dismissed. Megaw LJ: > Disagrees with suggestion that the inclusion of "relatives" makes this trust so wide to be administratively unworkable. > Agrees with 'Gulbenkian's' test. ...read more.

Conclusion

> On appeal, the Court of Appeal upheld this decision, but held that Goff J had used the incorrect test of validity - the correct test was used in 'Re Gulbenkian's Settlements' and so the case was given to the Chancery Division to consider the validity of the clause. > Executors appealed to the House of Lords who reversed the Court of Appeal decision stating that clause 9(a) was a trust and again remitted the case to the Chancery Division. > During this hearing, it was decided that the test in 'Inland Revenue Commissioners v Broadway Cottages Trust [1955] Ch. 20' no longer applied and instead, the test mentioned earlier in 'Re Gulbenkian's Settlements' was to be utilised - accordingly, the clause was valid as a trust. > The executors' next appeal was dismissed using the above test. > As to the validity of a discretionary trust, you must distinguish between conceptual certainty and evidential difficulty - if an individual could not establish that he was a member, then he must not be a member. > There was no conceptual uncertainty regarding the words "dependants" or "relatives" and so the trust was valid. Word Count: 1,012 words 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Equity & Trust Law section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Equity & Trust Law essays

  1. Equity Case Summaries

    * Equity will not assist the volunteer BUT equity looks to intent not form and will aid one who has done everything necessary looking at * Intention of parties * If gift, intention of donor ASK these questions when answering a problem question: The requirements which must be fulfilled before

  2. Constitution Of Trusts Problem Question - in order to decide whether Nixon is entitled ...

    the formalities required and that it is unlikely that he will use the statute as an instrument of fraud. In order to determine whether Nixon could sell his collection of diamonds, we must first decide whether he has effectively declared himself trustee, taking into account any formalities that could be required, as we did with the farm.

  1. Express Trusts

    objects or persons intended to have the benefit of the recommendation or wish be also certain."4 a. Certainty of Intention: The test requires that the "intention to create a trust is clearly to be allocated from the language used and the circumstances of the case" as stated by du Parq in re Schebsman5.

  2. Are trustees too powerful?

    or by statute to deal with or dispose of property in which he may have no beneficial interest, this can be seen to arise in two different forms one of which gives powers of disposition over the property such as the powers of appointment and those which give a power

  1. Charitable trusts, what gives them charitable status?

    Secondly that the purpose is beneficial to the community in a charitable way.6 1. Relief of poverty Trusts for the relief of poverty are exempt from the public benefit requirement. Poverty in this sense does not mean that of destitute or being penniless.

  2. certainty of objects

    Unquote The basic idea of the validity of such trusts relates to the question of enforceability. In other words, a non-charitable trust is void unless there are ascertained or ascertainable beneficiaries capable of enforcing the trust. As per Sir William Grant in Morice v The Bishop of Durham, Quote Every trust (other than a charitable one)

  1. “The Insolvency Act 1986 gives the court the power to set aside trusts which ...

    These types of trust have existed long before Barclays bank v Quistclose a good example of this being Toovey v Milne1. All the House of Lords did in Barclays bank v Quistclose is confirm that such arrangements could create a valid trust2.

  2. The Development of Equity and Trusts

    The maxims of equity are more useful than rules and cover many issues. Maxims are approximately assembled under three headings. âMaxims concerning the nature of equity and its jurisdiction, Maxims concerning the conduct expected of claimants and, Maxims concerning the circumstances in which equity will

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work