Examination Timing: 00H02M22S
Jonathan declares a trust over his family home, giving his wife, Sarah, a life interest in the property with his sons, Mark and Adam, becoming entitled to the property absolutely after Sarah's death. He fails to transfer the property to the trustees, but as they are appointed as the executors of his will, the property vests in them on his death five years later. Mark and Adam, trying to make things difficult for the trustees, seek damages from them on the basis that they have breached their duty to collect in the trust property. Which of the following statements best describes the position?
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Your selected option: C
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The correct answer is E. The principle that "equity follows the law" means that equity will not create completely new legal rights and remedies that are contrary to law. The Court of Chancery never claimed to override the courts of common law. It is only when there is some important circumstance disregarded by the common law rules that equity interferes. However, just seeking some general idea of 'justice' will be too vague and uncertain.
Key Point: The principle that "equity follows the law" ensures that equitable remedies align with established legal principles. Trustees must adhere to their duty to collect and vest trust property, and equity intervenes when common law principles are insufficient to achieve justice.
收集问题
please elaborate more
Of course, I'd be happy to elaborate on this for you.
In the scenario where Jonathan declares a trust over his family home, providing his wife Sarah with a life interest and his sons Mark and Adam with the remainder interest, we need to focus on the duties and actions of the trustees following Jonathan's death.
Here’s the key breakdown:
1. **Declaration of the Trust**: Jonathan declared a trust, indicating his intention that Sarah has a life interest and Mark and Adam have the remainder interest after Sarah's death.
2. **Failure to Transfer Property**: Jonathan did not transfer the legal title of the property to the trustees during his lifetime.
3. **Appointment as Executors**: The trustees were appointed as executors of Jonathan’s will. Consequently, the property vests in them upon Jonathan’s death.
4. **Duty to Collect Trust Property**: Trustees have a fiduciary duty to collect and vest the trust property properly.
Now, Mark and Adam are attempting to claim damages from the trustees for allegedly breaching their duty to collect in the trust property.
### Explanation of Correct Position:
**Equity Follows the Law**: The principle of "equity follows the law" states that equity will apply rules and remedies consistent with the common law unless there is a significant reason not to do so. Equity does not create new legal rights contrary to legal principles but intervenes when the common law alone is insufficient to achieve fairness.
### Why is the answer E?
The trustees, in this case, have not breached their fiduciary duty merely because they initially did not take possession of the trust property. Upon Jonathan’s death, the property automatically vested in them as executors. By the time they’re acting in their capacity as trustees post Jonathan’s death, they already hold legal title through their role as executors. Therefore, **there hasn't been a failure to collect the trust property**, given that they come to hold the property through legitimate legal transition post-death.
Hence, an assertion that the trustees breached their duty to collect the property is incorrect. The legal title passed appropriately within the framework of law upon Jonathan’s death, aligning with the principle that “equity follows the law.” The trustees are likely adhering to their obligations properly.
### Key Point to Remember:
Equity steps in only when the common law is insufficient to provide justice. In this instance, since the property legally passed to the trustees upon Jonathan’s death and they hold it correctly, there is no sufficient cause for equitable intervention.
I hope this gives you a clearer understanding of the situation. Never hesitate to ask more questions; your engagement is key to mastering these concepts!