Ratio Decidendi
Equity will not perfect an imperfect gift. There are three ways to transfer property: outright transfer, self-declaration of trust, or transfer to trustees. If a settlor intends one mode but fails to complete it, equity will not treat the failed transfer as effecting another mode.
Facts
Thomas Medley purported to transfer shares to Samuel Lord to hold on trust for the claimants. However, the shares were never registered in Lord's name — only a power of attorney was given. Medley died without completing the transfer.
Judgment Summary
The court held that the trust was not constituted. The shares were never transferred to the trustee. Equity would not perfect the imperfect gift by treating Medley as having declared himself trustee.
Key Quotes
"There is no equity in this court to perfect an imperfect gift."
— Turner LJ
"If the settlement is intended to be effectuated by one of the modes to which I have referred, the court will not give effect to it by applying another of those modes."
— Turner LJ
Subsequent Treatment
Still the leading authority, though exceptions exist: Re Rose [1952] (donor has done everything in their power), Pennington v Waine [2002] (unconscionability), and Strong v Bird (vesting by operation of law).