Void and voidable trust

 If trust is void, it will become resulting trust and revert back to the owner
 In-alienation: cannot be separated, cannot have someone to receive the property but not
to transfer the property
Perpetuity
 Perpetuity: something last forever and indefinite time
 Trust created in future, take place in future, must have a definite time, cannot just say
future
 Eg: when the beneficiaries reach the age of majority, upon the death of someone, during
the lifetime of someone
 Lifetime of testator or the person specified plus 21 years, cannot have more than that,
maximum period for an express private trust
 X + 21 years
 Chartered Bank (Malaya) Trustees Ltd Singapore v Mckern & Ors 1958
 Fatimah v Logan (1871)
Alienation
 Received property but not supposed to sell off, prevent you to give away, the property
held under trust is void
 Re Brown
o Testator devise property among 4 sons subjected to conditions, similar to forfeiture
o If any of the son mortgage or sold the interest to the others other than bro, F tried to stop
the sons from mortgage or sold to other
o H: this condition is equivalent to general restraint on alienation and hence, the trust is
void
 If given someone an estate which is described as fee simple (absolute, has all the right,
highest absolute ownership, no timeframe, absolute ownership), it is ridiculous not to
allow them to alienate the property
 Prevent future commercial transaction, not good for the society
Rules on accumulations
 When there is trust property, there is investment, cannot just accumulate all the profits
together, after the certain period of time, the benefit must be distributed to the
beneficiaries
 There is power to accumulate income for minor beneficiaries under S.31 of Trustees Act
Voidable - transaction designed to keep property from Creditors
 If A overspent, need to subject to bankruptcy proceeding, court will seize the property,
some want to default the seizure, transfer the property, the property and the legal title
does not belong to A, A and the sis will execute a trust, in legal title, sis will have legal
title, but in reality, A has legal title, this type of trust is voidable
 Lloyds Bank Ltd v Marcan [1973]
o Mortgagor (the person applied for mortgage) know the bank is doing application on
possession of property, he granted a lease to his W, for a term of 20 years, he intended
to deprive the bank of the ability of obtain the property
o Bank cant retain the property as the W is there
 Re Butterworth
o Settlement was void as against the trustee in bankruptcy on the ground that it was
evidently executed with the view of putting settlor’s property out of the reach of his
creditors