Description
You MUST answer BOTH Question 1 AND Question 2 . Question 1 is worth 50% of your total mark and Question 2 is worth 50% of your total mark. You should split the word count on this basis (approximately 1500 words for Question 1 and 1500 words for Question 2).
Question 1
Critically examine the use of resulting and constructive trusts as ‘equitable devices’ which cohabitants can use to establish an equitable interest in a home that is in the sole name of their partner.
Question 2
Marilyn died last month. She had retired from the family business (Tassels and Trimmings Ltd (TAT) in October of last year and took the following steps:
• She said to her son, Nick, ‘I know that you want to quit your job. I am giving you my shares in Tassels and Trimmings to give you an income so that you can do something which you enjoy instead. I will see to all the formalities as soon as I can.’ Nick immediately resigned from his well paid job and spent all his savings on travelling the Great Wall of China, from which he has just returned. The TAT Ltd share certificate and a signed stock transfer form in favour of Nick have been found amongst Marliyn’s possessions.
• Marilyn wrote a letter to her daughter, Olivia, saying, ‘You are to have my house in Swansea to hold on trust for your daughter, Phoebe, if and when she is 21’. Marilyn gave Olivia an executed transfer deed in her favour, which she kept in her safe at home.
• Marilyn made a will appointing her sister, Rosie, as her executor. The will was valid and was witnessed by Marilyn’s former husband, Steve, and her neighbour, Trevor. In the will she gave a legacy of £150,000 to Rosie and the residue of her estate to her current husband, Victor.
After executing her will, Marilyn asked Rosie to hold the £150,000 on the terms of a letter that she would give her. Marilyn gave Rosie an envelope 8 weeks before she died, with the following statement written on it: ‘Please do not open before my death’. After Marilyn died, Rosie opened the envelope and found a letter which read as follows:
‘Dear Rosie,
Out of the £150,000 that I am leaving you in my will you are to give my ex-husband, Steve, whatever he needs to live comfortably and give the rest to my children. Thanks for your help.
Marilyn’
Advise Rosie who is entitled to:
(a) the shares in TAT Ltd;
(b) the house in Swansea;
(c) the legacy of £150,000
