Ways of Giving in Lifetime
3 important questions on Ways of Giving in Lifetime
What are the three main ways of transferring property under Milroy v Lord?
1) outright gift to the donee (donee becomes the absolute owner of the property and has complete control over it)
2) transfer to trustees to hold on trust for the beneficiary
3) Self-declaration of trust (settlor declares himself as trustee)
2) transfer to trustees to hold on trust for the beneficiary
3) Self-declaration of trust (settlor declares himself as trustee)
In a situation where a settlor intends to use one method the three methods mentioned above of transferring property but fails to complete the required steps, will equity save the gift by construing the intended method with another method (Milroy v Lord)?
The court will not perfect an imperfect gift by construing the intended method with another method and equity will not assist a volunteer (intended recipient who has not given value).
If the donor intended an absolute gift but failed to effectively transfer the property in the correct manner, can the ineffective gift be regarded as a declaration of trust? What is the authority for this?
In Richards v Delbridge, the grandfather incorrectly attempted to transfer the lease as a gift to his grandson. It was held that the transfer of the lease as a gift was ineffective because it was not by deed. The transfer was also ineffective as a declaration of trust because the wording clearly shows that the transfer was meant as a gift (under section 3: example of what happens when you do not follow the correct method).
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
