A formal contract which can create or transfer an interest or obligation without the need for consideration. The requirements of a deed are set out in s 1 Law of Property (Miscellaneous Provisions) Act 1989.

A common law doctrine which renders agreements entered into as a result of illegitimate economic pressure coercing another’s will—voidable.

In the absence of one of the parties, in this context usually the defendant.

A person in a relationship of trust and confidence towards another. While there are established categories of fiduciary, eg trustee/beneficiary and solicitor/client, the categories are not closed.

The period before full trial has been heard.

It is impossible to give a definitive answer to what this word means. It is a question of fact which equity can apply when the courts exercise their discretion to do justice.

An equitable doctrine that renders agreements entered into as a result of another’s influence voidable.

Where beneficiaries have an interest in the capital of a trust, trustees have a power to advance part of the capital for the advancement or benefit of the beneficiary.

A condition placed on a trust, such as ‘to Iain should he pass his exams’.

An interest which may be terminated on the occurrence of certain events.

A person or legal entity who receives a gift. The donor is the person who gives the gift.

Literally ‘in life’. Usually used in relation to this text when a person creates a trust or gives a gift during his or her lifetime.

An interest in trust property which lasts for the life of the beneficiary; eg if Abigail leaves her shares in Arrowtech to Fraser for life, remainder to Colin, Fraser will hold the life interest and Colin will hold the remainder interest.

A power of trustees to apply any part of the income of a minor’s interest towards his or her maintenance, education, or benefit.

The generic word for a person who administers a will.

In this text, it is the power under a trust to appoint a person to distribute the trust property.

A term used to describe a trust or trust instrument.

A person who gives (settles) property under a trust.

A gift or trust made by will ­(testament).

A present property right either to use and enjoy the property now or to use in the future. It is not conditional on any event as a contingent interest. It is an existing property right which can be enforced at law.

A person chosen by a testator to administer his or her estate. See also personal representative.

Property which is not physical in nature, but which can still be owned, eg stocks and shares. See also chose in action.

A person’s nearest relations.

Physical property, eg a house or a painting. See intangible property.

A person who executes a will.

Clear evidence of ownership or control.

Where an attempt to transfer property legally has failed, the transfer is then said to be imperfect.

The person who is intended to receive the property.

When a person, or entity, gains a present legal right.

A person who has not given valid consideration for the transfer. This may be because it was a gift or because the contract was void or illegal.

To transfer an interest, either legal or equitable, in property.

An intangible property right that is not enforceable by possession, such as a debt under a contract.

An addition to a will which can change the original terms of the will. The codicil must also comply with the requirements of the Wills Act 1837.

To dispose of an interest. In this text, to give away or assign.

An evidential matter. There should be clear evidence on which to base a legal process; usually in writing is the best evidence.

An interest which takes effect after a life interest.

An interest which exists. In this text, it will differentiate between the creation of a beneficial interest and the transfer (disposition) of an existing interest.

The principal representative of the Crown in legal matters.

The body responsible for the administration of charities in England and Wales.

When a group of people form a company, they become incorporated. The company has its own legal identity and can own property in the same way as any individual. An unincorporated association is a group of people who do not have the same legal personality as a company. It is merely a group of people who come together for a purpose. As they have no corporate identity any property owned by the association is owned by all the members of the association.

All property can be co-owned by more than one person. If this is the case, they can own the property as joint tenants or as tenants in common. A joint tenancy in property (any property, not just land) means that all the co-owners have an identical interest in property; it is not divided into individual shares. A joint tenant can sever his or her joint tenancy at any time and become a tenant in common.

Means forever. The law prevents ­people tying up property interests which cannot be disposed of. One of the features of a property right is that it should be capable of disposal by its owner.

When co-owners end their joint tenancy and become tenants in common.

Co-owners of property who have a separate and identifiable interest in property. Unlike a joint tenant who has an identical interest to all other joint tenants, a tenant in common has his or her own share of property.

By agreement; not express but by failure to object.

Outside—not within the will itself.

Legal language used to describe the point at which a will is written and properly formalized. Do not confuse this with the point at which the will becomes effective—ie when the testator dies.

Equity requires that all property is owned by an identifiable object, person, or legal entity.

See chapter 7 for non-charitable purpose trusts which have been declared valid.

Property other than real property, such as pictures, jewellery, and cars (but not exclusively).

Land.

Consideration has the same meaning as in contract law. There must be some exchange. Note also that a deed will be sufficient consideration.

A trust which is determinable upon the beneficiary’s bankruptcy or other identified event, at which point a discretionary trust arises for the beneficiary and his or her family—see s 33 Trustee Act 1925.

A person who holds the remainder interest in a trust. See remainder interest.

Describes when a trust is ended, and its property applied to a new trust. See settlement.

The trust property itself. Beneficiaries who hold a remainder interest are entitled to the capital of the trust; eg if Phoebe leaves 1,000 shares on trust to Urfan for life, remainder to Mohmin, Urfan will be entitled to the income from the shares for his lifetime. When Urfan dies, Mohmin will be entitled to the shares themselves (ie the capital).

A type of trust in which the trustees have a duty to apply the trust property among a class of beneficiaries. While the trustees have a duty to distribute, they have the discretion to decide which members of the class to appoint as beneficiaries and in what amounts. This can be compared with a fixed trust, where the beneficiaries and their interests are fixed from the start.

The profits derived from property, eg the dividends from shares. Beneficiaries who hold a life interest are entitled to the income from the trust property. Compare with capital.

A settlor will often include a letter of wishes with a trust instrument, expressing the settlor’s preferences regarding how trustees should exercise their discretion, eg to favour the settlor’s children over members of his or her wider family when making appointments to a discretionary trust. Trustees should take these wishes into account, but they are not binding.

A person who holds a life interest in a trust. See life interest.

A Latin phrase meaning ‘as much as he has earned’.

Payment for services rendered.

If a trust or contract is voidable, it is capable of being set aside. However, until that occurs, it remains enforceable. In contrast, if a trust were void, it would never have legal effect.

A person who takes possession of property belonging to another.

A person who has acted in good faith, with no evidence of knowledge of any wrongdoing.

In the possession of.

Payment from one party to another guaranteed to be paid if there is a breach of duty.

All trustees are equally liable (jointly) but can also be individually liable for the whole loss (severally).

A legal charge or hold on particular property to secure the repayment of money owed.

Where property does not remain in its unique identifiable form.

A bankruptcy payment will be made to a person with priority before payments are made to other creditors.

In proportion to their contribution, sometimes referred to as pari passu. Note that it does not mean equally. If a person contributes 10 per cent to the purchase he or she gets a 10 per cent interest.

Liability which arises for the actions of another.

Monetary compensation given as a remedy as of right on breach of a legal obligation.

In this context it means granted at full trial. It does not mean that it lasts forever. An injunction may be granted for a specific period or for certain timescales.

At first glance—on the present facts, without a full investigation.

A Latin term used to describe beneficiaries who are adults (over 18) of sound mind. You will typically come across this phrase in connection with issues which require the consent of beneficiaries.

This can be any person alive at the time the trust is created. Often people attach it to the youngest member of the Royal Family, but it can be anyone who is alive.

A rule that property must belong to a legal person within the perpetuity period. The common law rule was that this was a life in being plus 21 years, and there are now different periods set out in the Perpetuities & Accumulations Act 1964 and 2009.