EQUITY AND TRUST 7
RE:EQUITY AND TRUSTS LEGAL ADVICE
Thisletter is in response to the concerns that you had indicated in theletter we received from you regarding required legal advice. I wouldlike to break down to you the findings of both cases as follows:
Entitlementto the Platinum Discs
Theletter, which the firm received, made the confirmation that you andthe now deceased Mr Pilchard, had worked together in the musicbusiness. Prior to his death, Mr Pilchard had an emotional encountertwo weeks ago, where a lot happened. During the sensitiveinteraction, old Pilchard confirmed the need of having you takingfull ownership of his platinum discs. The next thing that followedwas the handing over of Pilchard’s keys of the deposit box (in thebank). In other words, you and Pilchard entered into a trustagreement in an oral manner.
Whenthe owner of a given property seeks to ensure that trust comes toaction upon his/ her death, the aforementioned trust must be incompliance with certain critical factors. First, a trust can becreated by reason of a will, by oral means or by law. When looking atthe creation of trust via oral means, it is expected that sufficientevidence must rest in this case, the oral trust created between youand Pilchard must show his intent of you having his discs. With thepresence of indisputable evidence, the law will make the presumptionthat there was the intention to create trust. When looking at theevents that took place two weeks before Pilchard’s death, it isclear that he wanted you to have full custody of his platinum discs.At the time of Pilchard’s death, you not only were aware of wherehe placed his platinum discs, but he gave you access to his bank’sdeposit box. That is proof enough of the fact that Pilchard wantedyou to have his platinum discs and as such, he entered into a trustrelationship with you, orally and with evidence.
Thelaw of Equity can back up very well your claiming ownership of theplatinum discs mainly when looking at the facts surrounding the case.One, that which is considered Pilchard had intended to do by handinghis keys to the deposit box in his bank, containing his platinumdiscs, ought to be done. Meaning that his intent for entering into atrust agreement with you must be considered as already done, provingthat you are entitled to the ownership of the platinum discs.
Secondly,the law of Equity will have to take into full account as being law bygranting you rights to Pilchard’s platinum discs given the proof ofthe deceased`s intent to create a trust with you. This is backed upby the fact that you had the keys to Pilchard’s deposit box in thebank, meaning that you complied with the rule of evidence.
Thethird and final reason why the law of Equity would prevail in yourfavour with regards to this case is that you were the first to knowPilchard`s deposit box which had his platinum discs and he wanted youto have the discs two weeks to his death. With that in mind, it isapparent that you have entitlement to the platinum discs and notPilchard`s girlfriend. The reason behind this conclusion is given bythe fact that you were aware of Pilchard`s wishes before hisgirlfriend and the executors were.
Withthe above background, I can deduce that you are entitled to theownership of Pilchard’s platinum discs.
Usageof the £50,000 to Produce an Album by Own Self
Whencarrying out an analysis of the details, in this case, it is clearthat you are mentioned in Pilchard’s will. The meaning being thatthe fund which you are entitled to is not a secret trust, rather afull trust fund, as much as it only came to your attention from theexecutors that Pilchard had entrusted £50,000 of his estate for yourusage in making an album. What I can establish is that Pilchard’sselection of Pete automatically made him your trustee and you becamethe beneficiary in the relationship.
The reason that Pilchard would have selected Pete to be your trusteeis that, one he is a record producer whom you are aware of,confirming that you have a clue of his expertise in music producing.Pete was, therefore, the best candidate to manage the productiontrust fund on your behalf, confirming his role as a ‘professionaltrustee.’ Your letter states that Pilchard left Pete £50,000 tohelp you produce your next album indicating that the probable reasonPete was selected as the administrator of your trust was because ofhis skill and professionalism in the music production sector.Additionally, it could be that Pilchard selected Pete to be thetrustee because of your age, given that you may not have the fullcapacity to do your management while recording at the same time.Pilchard must have had best interests in selecting a professional tohelp you with your latest album production.
Youshould be able to note that in a trust relationship, an individual isselected to play the role of holding the property rights of anotherperson. The other important factor that I should bring to yourattention is that Pete is liable under Equity to exercise theproperty rights under what is termed as an ‘obligation.’ For Peteto have agreed to be the administrator of your album fund, it meansthat he had a full conscience when entering into the trusteeship, andin addition, he was aware of what he was obliged to do while playinghis role as an administrator. With that in mind, I can comfortablysay that Pete must act within his limits as a trustee to protect yourproperty rights regarding the £50,000 fund, in the sense that thecash goes into performing that which it was intended for by Pilchard.What is notable at this juncture is that Pete owes you a duty of carein the management of the £50,000 on your behalf.
Concerningthe claim as mentioned under the subject presented above, I candeduce that you cannot solely use the £50,000 to produce an album byyourself. However, you can challenge Pete’s role as theadministrator of your trust fund by means of application in a courtof law. In such a case, you will be in a position to control thetrusteeship but on the proof of occurrence of certain events. Forinstance, in the case that Pete goes against his fiduciary duty andyou suffer any loss pertaining to your estate of £50,000, then onsuch grounds, the trust can be transferred to you for yourmanagement, meaning that you will have full power to exerciseadministration of the trust.
Insummary, I would wish to comment that the above findings are likelyto apply if your concerns were to be followed through in a court oflaw. Kindly go through the details of and be assured that I would beglad to be of your assistance in case of any more queries.
Theadvice that has been presented to the client in the letter in thefile REF:LL6001/ 27/01/2017,is based on the fundamental principles of s. Thebreakdowns of the principles that apply to the two concerns that werepresented by Mr Barrie are broken down as follows:
Lawof Equity: Entitlement to the Platinum Discs
TheMaxims of Equity are critical because they apply in a varied pool ofcircumstances as seen in Boardmanv Phipps (Virgo,2012).The maxims that guided the legal advice presented above are thosethat confirm that a) Equity supplements the law, b) Equity considersas done, that which ought to be done, and finally, c) In equalequities the first in order of time shall take full effect.
Lawof Trusts: No Entitlement to the Usage of the £50,000 to Produce anAlbum by Own Self
Theconclusion provided as above was based on four principles that applyto the law of trusts similar to those identified by WestdeutscheLandesbank Girozentrale v Islington LBC (Virgo,2012).The principles that applied to the client`s concern included: a)conscience, b) knowledge of the facts that have an effect onconscience, c) property that can be identified and finally, d)beneficiary`s interest in the said property. Additionally, the legaladvice to the client was based on the functions of trust will anemphasis on property management.
Guidedby the above principles, I have provided the conclusions presented inbold cases. I would, however, wish to request that more studies bedone to gain understanding on the full information contained in thedeceased’s will in order to arrive at concrete solutions regardingthe final advice that can be provided to the client.
Virgo,G. (2012). Theprinciples of equity and trusts.Oxford: Oxford Univ. Pr.