Equity and trusts law


Equity and Trusts Law
Max 2500 words
“It is evident that, although an isolated loose conversation will not give rise to a valid declaration of trust (see, for example, Jones v Lock (1865) 1 Ch App 25), the repetition of words by the owner, especially in the context of an intimate relationship, indicating that property is to be as much the claimant’s as his own will be sufficient.”
Paklowsk, M and Everett, K “Declarations of Trust and Unmarried couples” [1999] Fam Law 721
Critically discuss this statement. In particular you should consider the following questions:
1. (i) Have the courts become too willing to recognise the creation of a trust in circumstances involving informal conversations or conduct?
2. (ii) Shouldthecreationoftrustsbesubjecttomorestringentformalitiesrequirements?
3. (iii) Should it be easier to find a trust in the context of a family relationship, compared
with situations involving commercial relationships?