HL Deb 24 May 1921 vol 45 cc341-2

Clause 1:

Authorised method of settling land inter vivos by "vesting" and "trust" deeds.

1.—(1) After the commencement of this Act every settlement of land inter vivos shall be effected as follows, and in no other way, namely:—

There shall (save as hereinafter mentioned) be two deeds, one of which (in this Act referred to as "the vesting deed") shall he a conveyance of the land, for the estate or interest the subject of the settlement, and shall appoint trustees for the purposes of the Settled Land Acts, and the other of which (in this Act referred to as "the trust deed") shall declare the trusts affecting the settled land, appoint trustees for the purposes of the Settled Land Acts, and shall bear any advalorem stamp duty which may be payable (whether by virtue of the conveyance or otherwise) in respect of the settlement.

(2) This section does not render invalid an agreement for a settlement, and if a settlement of land inter vivos is expressed to be made in a manner not authorised by this section, then such settlement shall take effect in equity as a trust deed, and until the execution of the vesting deed a purchaser, whether or not he has notice of such settlement or agreement, shall not be concerned therewith unless the same is protected as a land charge.

THE LORD CHANCELLOR moved, at the end of Clause 1, subsection (2), to insert "provided that if a legal estate is conveyed to trustees for the purpose of creating a settlement the conveyance shall be valid, and the trustees shall hold the legal estate on trust to create a settlement in the manner required by this Act." The noble and learned Lord said: This is a drafting Amendment. The object is to remove any doubt whether, having regard to the restrictions imposed on the method of making settlements inter vivos, such a conveyance would only take effect in equity. This would not be right for there might he a secret trust creating a settlement. A purchaser of the legal estate from the grantees without notice of the trust ought to get a good title.

Amendment moved— Page 205, line 35, at end insert the said proviso. —(The Lord Chancellor.)

On Question, Amendment agreed to.