Constitution of trusts

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  • Constitution of trusts
    • For validity of trust need the three certainties and proper constitution
    • Constituted - The ownership of property is transferred from the settlor to the trustee
      • Different types of property are transferred in different ways
        • Transfer of land - S52 Law of property Act 1925 - Must be supported by a deed.
        • Transfer of shares - the new owner must execute a shares transfer form once the shares are transferred to them.
    • Milroy v Lord 1862 - Two means of constituting a trust
      • declare yourself trustee
      • Transfer property to a trustee
    • Has the settlor done everything in their power to transfer the property?
      • No - transfer not valid
      • Yes - Trust is validly constituted

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