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Equity and Trusts is one of the seven foundations of legal knowledge that, among other things, must be completed as part of your law degree if you want to fulfil the academic component of Bar training in England and Wales.

This module deals with the rules and principles governing the creation and operation of trusts – a particular method of holding property that developed historically in the courts of equity – and related principles of equity The syllabus focuses on three broad areas:

1. the requirements for establishing a valid trust (including express private trusts; charitable trusts; implied and resulting trusts;constructive trusts)
2. the powers and obligations of trustees under a valid trust and the powers and obligations of other persons in a fiduciary position
3. the remedies available when trustees and other fiduciaries act improperly.

Topics covered

• Definition and distinction from other legal concepts. Classification of trusts. Equitable rights and remedies.
• Express private trusts. Certainties of a trust. Statutory requirements for creation. Incompletely constituted trusts. Purpose trusts Secret trusts.
• Trustees’ powers and duties. Delegation of trustees’ powers and discretions.
• Charitable trusts. Definition and types of charitable trusts. Distinctions from private trusts. Doctrine of cy près.
• Resulting trusts. Types of resulting trust. Purchase in the name of another and contributions to purchase price. Quistclose trusts. Beneficial interest not completely disposed of.
• Constructive trusts. General nature. Types of constructive trusts. Constructive trusts in cases of wrongful enrichment and unjust enrichment. Constructive trusts and fiduciary obligations.
• The appointment, retirement and removal of trustees.
• Remedies for breach of trust. Trustees’ liability to account. Equitable compensation. Exemption clauses. Trustees’ right of indemnity or contribution. Dishonest assistance. Knowing (unconscionable) receipt.
• Claims based on tracing. Tracing rules. Trusts, liens, and subrogation.

Learning outcomes

If you complete the module successfully you should be able to:

• Understand the modern law of trusts within its historical origins, together with the role of equity in modern law
• Compare and contrast types of trusts and explain their main distinctive features and purposes
• dentify and apply relevant statutory frameworks to the law of trusts
• Explain how breaches of trusts arise and identify and evaluate appropriate remedies
• Evaluate key issues in judicial decision making in the law of trusts and equity, including ethical and societal considerations, and demonstrate understanding of the wider academic debates.
• Apply knowledge to complex practical problems and theoretical enquiries demonstrating the ability to think critically about the issues arising
• Synthesise key arguments advanced in judicial opinions and academic writings
• Distinguish lines of argument and analyse their relative strengths and weaknesses
• Use appropriate legal terminologies specific to the law of Equity and Trusts.

Assessment

4hr 15 mins unseen examination

Essential reading

• Penner, J.E. The law of trusts. (Oxford: Oxford University Press, 2022) 12th edition [ISBN 9780192855008].
• Virgo, G. The principles of equity and trusts. (Oxford: Oxford University Press, 2023) fifth edition [ISBN 9780192857170].