Lifetime Transfers of Equitable Interests - Disposition of Equitable interests: Section 53(c) LPA 1925
3 important questions on Lifetime Transfers of Equitable Interests - Disposition of Equitable interests: Section 53(c) LPA 1925
Explain the requirements in s 53(1)(c) LPA 1925 when disposing of an equitable interest?
Under s 53(1)(c) LPA 1925 the disposition must be in writing and signed by the person disposing of the interest.
Explain why the disposition of equitable interests in Grey v IRC was void?
The settlor orally transferred the share to the trustees to hold for the benefit of the grandchildren. It was held that the disposition was ineffective because it did not comply with s53(1)(c) LPA 1925 - signed writing.
Contrast with Vandervell v IRC and explain why an oral disposition was allowed here?
Mr Vandervell was an absolute beneficiary of a bare trust. He orally instructed the trustee to transfer both the legal and equitable title. The disposition was valid despite not complying with s53(1)(c) because Mr Vandervell was a beneficiary of a bare trust meaning that he could collapse the trust using Saunders v Vautier and transfer property directly.
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