TUTORIAL TWO: weeks five & six

Completely and Incompletely Constituted Trusts

2. Your tutorial group has been invited to present the following papers at an
Introductory Seminar on trust law. Three persons are required to present on each topic:
2.1 Case-law on completely constituted/ executed trusts. (3 persons, 10 mins)
2.2 Case-law on executory trusts (3 persons, 10 mins).
2.3 Implications of incompletely constituted trusts for beneficiaries (3 persons, 10 mins).
2.4 How are secret trusts, discretionary and protective trusts completely constituted? (3
persons, 10 mins)
2.5 How are charities and NCPTs completely constituted? (3 persons, 10 mins)

2.1 Case-law on completely constituted/ executed trusts. (3 persons, 10 mins)

COMPLETELY CONSTITUTED TRUST
A completely constituted trust is one where there is an express declaration of trust
and vesting of trust property in the trustee at law and in the beneficiary at equity.
Seck Mun Foo v Datuk Harris
Seck Mun Foo is the incumbent and public officer of the Kelab, pursuant to s.9(c) societies act
1966
It was their contention of the Kelab that they had acquired certain equitable property interes or
beneficial ownership in the land which the Kelab complex stood.
D become registered proprietor of the land – the transfer was not registered as stamp duty was not
paid.
The land was later sold by Datuk Harris to a third party.
Datuk Haris was only a bare trustee – cannot sell?

a) The court will not assist a volunteer to perfect an imperfect gift. (Jones v Lock)
b) Equity will not construe an ineffectual attempt to make a gift as a trust. (Milroy v
Lord)
*differences with express private trust.
INCOMPLETE CONSTITUTED TRUST
ICT can be enforced by beneficiaries who have given consideration for equity looks
on as done that which has agreed to be done.
If beneficiaries have no given valuable consideration, then they cannot enforce ICT
A trust is said to be incompletely constituted when settlor has not transferred
property to trustees.
What does it mean by consideration –

Exception to maxims equity will not assist a volunteer and will not perferct an
imperfect gift -

1. “The law is that a declaration of a trust may be made quite informally,

provided that the words used are clear and unequivocal”.
Discuss the above statement with the aid of case law.

2. Has a trust been created in the following circumstances?

i. Analakshmi bequeaths certain property to Bala, “having the fullest
confidence that he will dispose of it for the benefit of Chitra”.
ii. Arun bequeaths certain property to Bobby, “hoping he will continue
it in the family”.
iii. Ansu bequeaths certain property to Belbin, requesting him to
distribute it amongst such members of Chinama’s family as Belbin
should think most deserving.
iv. John bequeaths certain property to Adam, desiring him to divide the
bulk of it among Clara’s children.
v. Low Ying bequeaths certain property to Boon Siew and Chong Siew,
his executors, as trustees for Alex. Boon Siew and Chong Siew prove
Low Ying’s’s will.
vi. Aaron transfers certain property to Michael in trust to sell it and to
pay out of the proceeds Aaron’s debts. Micheal accepts the trust and
sells the property.
vii. Apandi bequeaths RM. 100,000 to Malika upon certain trusts and
appoints her, his executor. Malika severs RM. 100, 000 from the
general assets and appropriates it to the specific purpose.