Grey v IRC

Facts

Hunter transferred shares to trustees to hold for him. He then orally directed them to hold the shares on trusts for his grandchildren, to avoid stamp duty.

Issue

Was the oral direction a disposition of an equitable interest, which needed writing?

Held

Yes. The House of Lords held it was a disposition and was void without signed writing. The later written confirmations were liable to stamp duty.

Principle

A direction to trustees to hold for someone else is a disposition of a subsisting equitable interest and must be in writing.

Why it matters

It explains what counts as a disposition.

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