EQUITY AND TRUSTS LAW: CONSTITUTION
Constitution: movement of legal title.
1) Express trust: movement of legal title from the settlor to the 2) Movement of legal title for the transfer
trustee. Until legal title is transferred to the trustee, the trust of a gift (absolute ownership)
is not perfect and is not irrevocable.
- Pure personalty: three certainties and constitution
- Realty/Land: three certainties, s53(1)(b) LPA 1925 and
constitution.
A CONSTITUTION B
S CONSTITUTION T B
*SELF-DECLARATION OF TRUST: CONSTITUTION DOES NOT APPLY*
Settlor and trustee is the same person so the trustee already has legal title, therefore there is no need for
constitution.
Testamentary dispositions
If an individual has dies and creates a testamentary trust, constitution will take place via the will – legal
title will vest in the personal representative (executor/trix) and it will be their responsibility to transfer the
property to the trustee named in the will.
Same applies to testamentary gifts.
Constitution of different types of property
Land Chattels Shares
1) s52(1) LPA 1925: transfer of 1) Intention to transfer the s.1 Stock Transfer Act 1963
land must be done by means of property (Glaister-Carlisle)
deed. 1) Transferor fills out and signs
- Deed: s1 LP(MP)A AND transfer form
- Leases need a deed unless 2) Either: 2) Form and share certificates
they don’t exceed three sent to Companies Registrar
years. - Execute a deed of gift constitution only takes place
upon registration
2) Registration: s4 and s27 LRA OR
2007
- Delivery (Re Cole)
Choses in Action (e.g. Bills of Exchange Equitable Interests
debts/bank account)
Cheques made in favour of the 1) Must comply with s53(1)(c)
1) s136 LPA 1925: notice in transferor may be transferred to a LPA: signed writing at the time
writing must be given to the third party if endorsed by the of the disposition by the person
debtor/other party transferor, i.e. signed name on disponing of the interest.
the back of the cheque.
(Jones v Lock – cheque to baby,
no constitution)
Constitution: movement of legal title.
1) Express trust: movement of legal title from the settlor to the 2) Movement of legal title for the transfer
trustee. Until legal title is transferred to the trustee, the trust of a gift (absolute ownership)
is not perfect and is not irrevocable.
- Pure personalty: three certainties and constitution
- Realty/Land: three certainties, s53(1)(b) LPA 1925 and
constitution.
A CONSTITUTION B
S CONSTITUTION T B
*SELF-DECLARATION OF TRUST: CONSTITUTION DOES NOT APPLY*
Settlor and trustee is the same person so the trustee already has legal title, therefore there is no need for
constitution.
Testamentary dispositions
If an individual has dies and creates a testamentary trust, constitution will take place via the will – legal
title will vest in the personal representative (executor/trix) and it will be their responsibility to transfer the
property to the trustee named in the will.
Same applies to testamentary gifts.
Constitution of different types of property
Land Chattels Shares
1) s52(1) LPA 1925: transfer of 1) Intention to transfer the s.1 Stock Transfer Act 1963
land must be done by means of property (Glaister-Carlisle)
deed. 1) Transferor fills out and signs
- Deed: s1 LP(MP)A AND transfer form
- Leases need a deed unless 2) Either: 2) Form and share certificates
they don’t exceed three sent to Companies Registrar
years. - Execute a deed of gift constitution only takes place
upon registration
2) Registration: s4 and s27 LRA OR
2007
- Delivery (Re Cole)
Choses in Action (e.g. Bills of Exchange Equitable Interests
debts/bank account)
Cheques made in favour of the 1) Must comply with s53(1)(c)
1) s136 LPA 1925: notice in transferor may be transferred to a LPA: signed writing at the time
writing must be given to the third party if endorsed by the of the disposition by the person
debtor/other party transferor, i.e. signed name on disponing of the interest.
the back of the cheque.
(Jones v Lock – cheque to baby,
no constitution)
