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31 January 2008 / Peter Hungerford-welch
Issue: 7306 / Categories: Case law , Law digest
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Trusts

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Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358, [2007] All ER (D) 270 (Dec)

Nelson v Greening and Sykes (Builders) Ltd [2007] EWCA Civ 1358, [2007] All ER (D) 270 (Dec)

Where a person who is the owner beneficially of property—and the legal estate is vested in another as trustee for him—makes a declaration of trust, the practical effect amounts, or is capable of amounting, to the “getting rid of ” a trust or equitable interest then subsisting. This is not the same as saying that as a matter of law, it does get rid of the intermediate trust. Rather, in the case of a trust and sub-trust of personal property, the trustees may decide that as a matter of practicality, it is more convenient to deal directly with the beneficiary of the sub-trust.

The court added that authorities on trusts of personal property have no application to a case where the trust property is the purchaser’s interest in land created by the existence of an executory contract for sale and purchase.

Issue: 7306 / Categories: Case law , Law digest
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