By Gilbert Kodilinye
This booklet examines the proper Caribbean laws and case legislation including the overall ideas of trusts legislation as utilized within the English courts and different Commonwealth jurisdictions.
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Extra info for Commonwealth Caribbean Trusts Law 2nd edition
A clause (termed the ‘beneficiary designation clause’) in the Manufacturers’ Life policy stated: ‘Wherever a beneficiary is designated either in this policy or by a declaration in writing by the owner, such beneficiary will be deemed to be beneficially entitled to the proceeds of the policy, if and when the policy becomes payable…’ In the ALICO policies it was provided that: ‘The proceeds are to be divided equally among all persons who are named as primary beneficiary and who survive the assured…’ It was conceded that the Manufacturers’ Life policy, by its wording, created a trust in favour of the named beneficiary, but a dispute arose as to whether the clause in the ALICO policies created a trust in favour of the named beneficiary, or whether it was merely an ineffective attempt to confer a benefit on a third party.
She then claimed to have acquired a beneficial interest in the home by virtue of her contribution. The Lords Justices in the Court of Appeal were unable to agree as to whether the money had been advanced by way of loan or whether it gave rise to a resulting or constructive trust. Cairns LJ held that the transaction was a loan; Lord Denning held that it was not; Phillimore LJ suggested that it ‘might be’ a loan. The ultimate and majority decision was that the payment gave rise to a constructive trust, as it would be inequitable for the couple to deny that the mother-in-law had an interest in the property; but, to confuse matters, Phillimore LJ (with whom Cairns LJ disagreed on this point) took the view that a resulting trust could arise even if the transaction was one of loan.
A power of appointment enables the donee of the power (the ‘appointor’) to ‘appoint’ the settlor’s property in favour of other persons (called ‘objects of the power’). Such powers are useful because they make is possible for the donee of the power to take into consideration circumstances existing at the date of the appointment which the settlor could not have foreseen when he executed the settlement. For instance, a husband (H) may wish to leave all his property to his wife (W) for life, and after her death to their children.