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Law 580 Trusts Litman

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Law 580 Trusts Litman LAW 580 TRUSTS LITMAN - 2 - CHAPTER 1: INTRODUCTION ......................................................................................................... 5 General Trust Overview ........................................................................................................................... 5 Classification of Trusts – By mode of creation (General Overview) ....................................................... 6 The Trust Actors: Settlor, Trustee & Beneficiary ................................................................................... 7 Category of Trust Based on Duty & Discretion of Their Absence ........................................................... 8 Historic Use of Trusts: Their Function – historic and modern use of express trusts............................... 9 Modern Use of Express Trust: : Personal, including charitable trusts & Business trusts ....................... 9 Legal Issues Flowing From Income Trusts ............................................................................................ 11 Other business purposes for Trusts ......................................................................................................... 12 General Points: Trust Industry ................................................................................................................ 13 CHAPTER 2: DEFINITION AND NATURE OF TRUST AND FIDUCIARY RELATIONSHIPS ............................................................................................................................... 13 Nature and Definition of Trust ............................................................................................................... 13 Guerin v. The Queen, [1984] 2 S.C.R. 335.......................................................................................... 13 Fiduciary Relationships .......................................................................................................................... 15 Norberg v. Wynrib ............................................................................................................................... 15 Frame v. Smith (SCC, 1987)................................................................................................................ 15 Discretionary Trust ................................................................................................................................. 16 Williams v. Canada (2005) .................................................................................................................. 17 Ontario (Minister of Community and Social Services) v. Henson ...................................................... 18 Schipper v. Guaranty Trust Co. ........................................................................................................... 18 Beneficiaries ability to terminate a discretionary trust ........................................................................... 19 Saunders v. Vautier .............................................................................................................................. 19 Creditors and 3rd parties ability to get hands on trust assets .................................................................. 20 Protective Trusts ..................................................................................................................................... 20 Brandon v. Robinson (UK) .................................................................................................................. 20 Broadway National Bank v. Adams (US) ............................................................................................ 20 CHAPTER 3: CLASSIFICATION OF TRUSTS ............................................................................. 21 Classification by Creating Event (General Points – See Individual Sections) ....................................... 21 Purpose Trusts ........................................................................................................................................ 23 Re Denley’s Trust Deed ....................................................................................................................... 24 R. v. Wood ........................................................................................................................................... 25 Classification by Trustee’s Duties .......................................................................................................... 26 CHAPTER 4: RESULTING AND CONSTRUCTIVE TRUSTS .................................................... 27 Resulting Trusts ...................................................................................................................................... 27 Standing v. Bowring ............................................................................................................................ 28 MacQuarrie v. Barber .......................................................................................................................... 28 Brown v. Brown (NSW SC, 1993) ...................................................................................................... 29 1978 SCC (Rathwell v. Rathwell) ....................................................................................................... 29 Macleod v. Macleod (Nova Scotia TD, 1983) ..................................................................................... 30 Clark Drummie & Company v. Ryan .................................................................................................. 31 Vanderwell ........................................................................................................................................... 32 Clark v. MacInnis................................................................................................................................. 32 Rebutting the Presumption of Advancement: Illegal Purpose Trusts .................................................... 32 - 3 - Scheuerman v. Scheurerman (SCC, 1916) .......................................................................................... 33 Goodfriend v. Goodfriend (1972, SCC) .............................................................................................. 34 Tinsley v. Milligan (1994, H.L.) .......................................................................................................... 35 Failure to Exhaust the Subject Matter of Express Trust (Resulting Trusts) ........................................... 36 Re Gillingham Bus Disaster Fund Bowman & Others v. Official Solicitor ........................................ 36 Constructive Trusts ................................................................................................................................. 37 UE aspect of CT: Focus of Peters v. Beblow .......................................................................................... 39 Peter v. Belbow .................................................................................................................................... 41 Waselenko v. Touche Ross Ltd. .......................................................................................................... 42 Rawluk v Rawluk (not in materials) .................................................................................................... 43 Kimwood Enterprises Ltd. v. Roynat Inc. ........................................................................................... 43 McDiarmid Lumber Ltd v. CIBC ........................................................................................................ 44 Bedard v. Schell ................................................................................................................................... 44 Soulos v. Korkontzilas ......................................................................................................................... 45 Martin Commercial Fueling ................................................................................................................. 46 ―Constructive‖ (fictional) Trusteeship .................................................................................................... 47 Air Canada v. M&L Travel Ltd. .......................................................................................................... 47 Citadel General Assurance Company v. Lloyds Bank Canada ............................................................ 49 CHAPTER 5: THE ESSENTIALS OF A TRUST............................................................................ 52 Certainty of Words (intention) ................................................................................................................ 52 Nicoll v. Hayman ................................................................................................................................. 52 Hayman v. Nicoll (SCC, 1944) ............................................................................................................ 53 Douet v. Budd ...................................................................................................................................... 54 Wills Act – Undisposed Residue: ........................................................................................................ 54 In re Frame ........................................................................................................................................... 55 Byers v. Foley .....................................................................................................................................
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