Trust and Equity

Question: The issue in this case is to advice Michael whether or not she is entitled to be the beneficiary in Richardss property or not? Answer: Rule In order to create a trust their must be an intention of the testator to make the legatee hold his property for the interest of a third party In the case of McCormick v Grogan the court provided three essentials which created a secret trust. The first essential is that the testator must intend to create a trust in favour of the beneficiary. Secondly the donors before their death must communicate that they intend to create a trust o the donee. Lastly the legatee must give an expressed or implied ascent towards his acceptance of the trust In the case of Blackwell v Blackwell it was ruled by the court that communication, acquiescence and intention are the essential factors to create a trust. Application In this case there was a secret relationship between Richard and Michael which the former did not want to be disclosed. He wanted to leave something from his property for Michael. In his will he intended to create a trust where Michael was the beneficiary and Philip was the legatee. Although there was an intention from Richard to create a trust he did not communicate the matter to Phillip and no acceptance was taken from him. According to the rule of trust if there is no communication and acceptance a trust cannot exist. Conclusion Thus, valid trust had not been created in this case and Michael is not entitled to the property. References Newman, Alan. "Trust Law in the Twenty-First Century: Challenges to Fiduciary Accountability."Quinn. Prob. Law Jour.29 (2016): 261-310. Sitkoff, Robert H. "Trust law as fiduciary governance plus asset partitioning." (2013). Sitkoff, Robert H. "Trust law as fiduciary governance plus asset partitioning." (2013). Newman, Alan. "Trust Law in the Twenty-First Century: Challenges to Fiduciary Accountability."Quinn. Prob. Law Jour.29 (2016): 261-310.