| Brown v Burdett | |
|---|---|
 | |
| Court | High Court |
| Citation(s) | (1882) 21 Ch D 667 |
| Court membership | |
| Judge(s) sitting | Bacon VC |
| Keywords | |
| Trusts, beneficiary principle | |
Brown v Burdett (1882) 21 Ch D 667 is an English trusts law case, concerning the ability to create a trust for a purpose that does not benefit any actual person.
An old lady, Anna Maria Burdett who lived in Gilmorton, Leicestershire demanded in her will that her house be boarded up with "good long nails to be bent down on the inside", but for some reason with her clock remaining inside, for twenty years. [1] She directed her trustees to visit the house every three months to see that the trusts were effectually carried out, and if any trustee neglected this they should lose their entitlements under the will.
Bacon VC cancelled the trust altogether, and held that the twenty-year term was invalid for the house, yard, garden, and outbuildings. [2] He said very briefly,
I think I must “unseal” this useless, undisposed of property. There will be a declaration that the house and premises were undisposed of by the will, for the term of twenty years from the testatrix's death.
A trust is a legal relationship in which the holder of a right gives it to another person or entity who must keep and use it solely for another's benefit. In the Anglo-American common law, the party who entrusts the right is known as the "settlor", the party to whom the right is entrusted is known as the "trustee", the party for whose benefit the property is entrusted is known as the "beneficiary", and the entrusted property itself is known as the "corpus" or "trust property". A testamentary trust is created by a will and arises after the death of the settlor. An inter vivos trust is created during the settlor's lifetime by a trust instrument. A trust may be revocable or irrevocable; an irrevocable trust can be "broken" (revoked) only by a judicial proceeding.
In English common law, fee tail or entail is a form of trust, established by deed or settlement, that restricts the sale or inheritance of an estate in real property and prevents that property from being sold, devised by will, or otherwise alienated by the tenant-in-possession, and instead causes it to pass automatically, by operation of law, to an heir determined by the settlement deed. The term fee tail is from Medieval Latin feodum talliatum, which means "cut(-short) fee". Fee tail deeds are in contrast to "fee simple" deeds, possessors of which have an unrestricted title to the property, and are empowered to bequeath or dispose of it as they wish. Equivalent legal concepts exist or formerly existed in many other European countries and elsewhere.
Trustee is a legal term which, in its broadest sense, is a synonym for anyone in a position of trust and so can refer to any individual who holds property, authority, or a position of trust or responsibility for the benefit of another. A trustee can also be a person who is allowed to do certain tasks but not able to gain income. Although in the strictest sense of the term a trustee is the holder of property on behalf of a beneficiary, the more expansive sense encompasses persons who serve, for example, on the board of trustees of an institution that operates for a charity, for the benefit of the general public, or a person in the local government.
Greenway, also known as Greenway House, is an estate on the River Dart near Galmpton in Devon, England. Once the home of the author Agatha Christie, it is now owned by the National Trust.
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Seisin denotes the legal possession of a feudal fiefdom or fee, that is to say an estate in land. It was used in the form of "the son and heir of X has obtained seisin of his inheritance", and thus is effectively a term concerned with conveyancing in the feudal era. The person holding such estate is said to be "seized of it", a phrase which commonly appears in inquisitions post mortem. The monarch alone "held" all the land of England by his allodial right and all his subjects were merely his tenants under various contracts of feudal tenure.
Sir Francis Burdett, 5th Baronet was a British politician and Member of Parliament who gained notoriety as a proponent of universal male suffrage, equal electoral districts, vote by ballot, and annual parliaments. His commitment to reform resulted in legal proceedings and brief confinement to the Tower of London. In his later years he appeared reconciled to the very limited provisions of the 1832 Reform Act. He was the godfather of Francisco Burdett O'Connor, one of the famed Libertadores of the Spanish American wars of independence.
An asset-protection trust is any form of trust which provides for funds to be held on a discretionary basis. Such trusts are set up in an attempt to avoid or mitigate the effects of taxation, divorce and bankruptcy on the beneficiary. Such trusts are therefore frequently proscribed or limited in their effects by governments and the courts.
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Saunders v Vautier[1841] EWHC J82, (1841) 4 Beav 115 is a leading English trusts law case. It laid down the rule of equity which provides that, if all of the beneficiaries in the trust are of adult age and under no disability, the beneficiaries may require the trustee to transfer the legal estate to them and thereby terminate the trust. The rule has been repeatedly affirmed in common law jurisdictions, and is commonly referred to as "the rule in Saunders v Vautier" for shorthand.
United States trust law is the body of law regulating the legal instrument for holding wealth known as a trust.
English trust law concerns the protection of assets, usually when they are held by one party for another's benefit. Trusts were a creation of the English law of property and obligations, and share a subsequent history with countries across the Commonwealth and the United States. Trusts developed when claimants in property disputes were dissatisfied with the common law courts and petitioned the King for a just and equitable result. On the King's behalf, the Lord Chancellor developed a parallel justice system in the Court of Chancery, commonly referred as equity. Historically, trusts have mostly been used where people have left money in a will, or created family settlements, charities, or some types of business venture. After the Judicature Act 1873, England's courts of equity and common law were merged, and equitable principles took precedence. Today, trusts play an important role in financial investment, especially in unit trusts and in pension trusts. Although people are generally free to set the terms of trusts in any way they like, there is a growing body of legislation to protect beneficiaries or regulate the trust relationship, including the Trustee Act 1925, Trustee Investments Act 1961, Recognition of Trusts Act 1987, Financial Services and Markets Act 2000, Trustee Act 2000, Pensions Act 1995, Pensions Act 2004 and Charities Act 2011.
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The Liability of trustees inter se in English law governs in what circumstances and to what extent a trustee in English trust law is liable for the acts and defaults of their co-trustees under English Law. In general trustees are under a duty to act jointly and have authority to act individually only if the trust instrument so provides. In principle therefore each trustee has an equal say in the management of the trust property and therefore in the event of a breach the trustees are jointly and severally liable for their actions.
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English land law is the law of real property in England and Wales. Because of its heavy historical and social significance, land is usually seen as the most important part of English property law. Ownership of land has its roots in the feudal system established by William the Conqueror after 1066, and with a gradually diminishing aristocratic presence, now sees a large number of owners playing in an active market for real estate.
Westdeutsche Landesbank Girozentrale v Islington LBC[1996] UKHL 12, [1996] AC 669 is a leading English trusts law case concerning the circumstances under which a resulting trust arises. It held that such a trust must be intended, or must be able to be presumed to have been intended. In the view of the majority of the House of Lords, presumed intention to reflect what is conscionable underlies all resulting and constructive trusts.
Morice v Bishop of Durham [1805] EWHC Ch J80 is an English trusts law case, concerning the policy of the beneficiary principle.