Milroy v Lord
1862 · (1862) 4 De GF & J 264
Posted By lanbuk.com
- Facts
- A signed a deed purporting to transfer shares to Lord to hold on for Milroy. The shares were never registered in Lord's name.
- Issue
- Was a trust created, either by transfer or by declaration?
- Held
- No. The transfer was incomplete, and the court would not treat a failed transfer as a declaration of trust.
- Principle
- A trust is created by an effective transfer to trustees or by a declaration of trust. Equity will not perfect an imperfect gift.
- Why it matters
- It is the starting point for constitution of trusts.
Words and Latin in this note
- Settlor
- The person who creates an express trust by declaring himself trustee or transferring property to trustees. Open the note.
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.