Unit - Equity and Trusts
Level 5

Assignment
Task 1

Write an essay on the flexible and continually developing nature of equity. Your essay should:
• Explain key historical events leading to the development of Equity.
• Examine the relationship between law and equity.
• Explain the meaning of equitable maxims.
• Analyse the features of constructive trusts.

Task 2
On finding out he was terminally ill in January 2019, James decided to distribute some of his wealth before his death_
• James tells his brother, Martin, that he is giving him the shares that he holds in Neptune Limited to provide an income for him to set up his own business. Martin resigns from his job to set up the business.
• On a visit to his nephew, Peter (aged 12), James hands over his grandfather's medals saying that Peter should have them. On leaving James took the medals with him
• James wrote a letter to his niece Helen, saying that he was giving her his late wife's jewellery. Helen never got in touch about collecting the jewellery.
• James wrote to his sister, Gail, telling her he was transferring his holiday cottage in Scotland to her to hold an trust for James' 16 year old daughter, Melanie, when she attained the age of 21. He enclosed an executed trust deed transferring the house to Gail_
James died in May 2019 having made a will in March 2019 with his niece, Helen as the executor. The will left his cottage in Scotland and his late wife's jewellery to Alisha, his new partner. The will also left £25,000 to the Bentown Bird Watching club which is an unincorporated, non-charitable association_ The residue of his estate was left half to his son, Harry and half to his daughter Melanie in trust until she reaches the age of 18 with Harry as trustee. The Neptune limited share certificate and a signed transfer document in favour of Martin were found amongst James' belongings on his death as were his medals.
You are required to:
a) Advise who is entitled to=
• The Neptune Limited Shares
• The Jewellery
• The cottage in Scotland
b) Explain the three certainties and the difference between a trust and a gift in relation to the medals.
c) Explain the effects of the legacy to the Bentown Bird Watching Club

d) Explain whether there are any circumstances in which Melanie could receive monies from her trust before attaining the age of 18 and the impact this would have on the trust funds_
e) Analyse Harry's duties and responsibilities as a trustee and the potential defences for breach of this duty. In your answers you must:
• Analyse the features of different types of trusts.
• Apply statutory rules and their case law interpretations in appropriate scenarios.
• Examine the need for a human beneficiary in private express trusts.
• Illustrate established exceptions to the beneficiary principle.
• Describe the various methods by which gifts to unincorporated associations may be effected.
• Explain when power of advancement and maintenance can be utilised by the trustees.
• Differentiate correctly between administrative duties and fiduciary duties.
• Evaluate trustees' defences for breach of administrative duties.

Task 3

Kasper is a trustee of the Lantry Charitable Trust. In February 2019, he draws £10,000 of the trust's money (in breach of the trust) and pays it into his own bank account in which he already has £10,000 of his own money. A month later, he bought shares for £7,000 using money from his account. A week later he withdrew £7,000 and bought a car. The next month, he withdraws £5,000 which he gives to his son Ben to use as a deposit on an apartment he is buying.

Realising he is about to be declared bankrupt, Kasper transfers the shares to his daughter, Julia. They are now worth £8,000. On the day he is declared bankrupt, Kasper writes off his car in an accident.

You are required to:
• Advise the beneficiaries of the Lantry Charitable Trust on their position.
• Advise the son and daughter on the gifts made to them.

In your answers you must:
• Analyse the impact of illegality on legal presumptions.
• Evaluate conditions for tracing in law and in equity.
• Appraise the application of the change of position defence.
• Evaluate the rationale for the fiduciary relationship in equitable tracing.

Task 4

Aziz works for Mobapps Limited, producing apps for mobile telephones. He is on a three year contract to develop new apps, which requires him not to work for any other app or software development companies during his contract and for six months after the end of his contract. One year into his contract, Aziz accepts a job with Comp Software co. who develop bespoke computer software for businesses. When Aziz leaves, Mobapps find that all the material relating to the app Aziz was developing have disappeared and they fear that he will finish and sell the app himself.

You are required to advise Mobapps Limited on any equitable remedies it may have_ In your answer, you must:
• Assess when specific performance or injunction can be granted.

Attachment:- Equity and Trusts.rar