Ratio Decidendi
A declaration of trust need not use formal or technical language. Words such as 'the money is as much yours as mine' can constitute a valid declaration of trust if they show a present intention to create a trust.
Facts
Mr Constance received a personal injury award and placed it in a bank account in his sole name. He repeatedly told his partner, Mrs Paul, 'the money is as much yours as mine.' After his death, Mrs Paul claimed a share of the account.
Judgment Summary
The Court of Appeal held that Mr Constance's repeated statements constituted a valid declaration of trust. He intended to hold the money on trust for himself and Mrs Paul in equal shares.
Key Quotes
"There are no particular words or formalities required for the creation of a trust. The question is whether the words used show a clear intention to create a trust."
— Scarman LJ
Subsequent Treatment
Leading authority on informal declarations of trust over personalty. Often cited in disputes over beneficial ownership of bank accounts.