Turner LJ in the case of Milroy v Lord recognises the two methods of creation : declaration of self as trustee and transfer

to trustee. In another case, Re Rose,[1952] Ch 499, Evershed MR rejected the proposition by Turner LJ.

Discuss these cases and highlight the differences in each judgment.

INTRODUCTION
No express trust can be validly created unless: 1. the three certainties are satisfied. 2. the trust is completely constituted at the hands of the testator.

A trust will have the effect of being irreversible if: complied with the three certainties completely constituted at the hands of the testator

GENERAL RULE
an incompletely constituted trust is unenforceable. However, where 3 exceptions apply, such trust can become completely constituted.

Milroy v Lord
Thomas Medley (settlor) executed a deed assigning 50 shares to Mr Lord to be

held on certain trusts for the plaintiffs (Milroy).

Under the law, a valid transfer of the shares could only be done by entry in the books of the bank. That was never done. Thomas Medley merely delivered the shares certificates and executed a power of attorney in favour of Mr Lord, the trustee. This was treated as an insufficient conduct on Thomas Medleys part to transfer the shares in the hands of the trustee. No transfer of shares into the hands of the trustee. The issue before the court was whether the shares formed part of Medleys estate.

JUDGMENT
equity will not assist a volunteer by perfecting an imperfect gift no transfer of shares into the hands of the trustee = incompletely constituted = void the court could not intervene to constitute a trust. It thus forms part of Mr Medleys estate.