quistclose trusts what they are when ppt
TRANSCRIPT
Quistclose trusts – what they are, when they arise and what
to do about them
Who we are
What we will cover
• What is a Quistclose trust?
• Case study A – no Quistclose trust exists
• Case study B – Quistclose trust exists
• Distinctions between the two
• Steps to take if you think a Quistclose trust may exist.
What is a Quistclose Trust?
“ A Quistclose Trust exists where party A lends money to Party B for a particular and clearly set out purpose.”
Quistclose Trust in practice
Case study A
• Personal experience/background• 3 categories:
– Instruction received but not processed– Instruction received and processed, money
left IOM but frozen in KSFUK– Instruction received and processed, money
left KSFUK but frozen by RBS
• Du Preez (Habana) v KSF & others• Why did it fail?
Case study B
• Barclays Banks Ltd v Quistclose Investments Ltd 1986
Distinctions between the two case studies
• No new monies
• No condition on deposit
So where might QT’s arise?
• Undertaking to use funds for property purchase – can’t use for disbursements.
• Transfer to third party with clear instructions of use.
Conclusion
• Come to us!
• Richard will now answer any questions you may have!
Richard Gore
0117 906 9424
Polly Frost
0117 906 9452