Grey v IRC [1960]

Settlor wanted to transfer shares into six trusts for
his grandchildren.
Transferred shares to trustees of grandchildren’s
trusts, but to be held on bare trust for himself.
Beneficial interest remained with him, so negligible
stamp duty.
Then orally directed trustees to hold shares upon
trust for grandchildren.
No document, so no stamp duty.
Five weeks later trustees executed document declaring
they held the shares on trust for grandchildren.
Revenue argued this
transferred beneficial interest from settlor to grandchildren, and
as such stamp duty payable.
Trustees argued it was settlor’s oral direction that transferred
the beneficial interest, and such a direction did not require writing under
s53(1)(c) to be valid.
House of Lords unanimously held that this type of
disposition was within s53(1)(c) so needed to be in writing.
The oral direction was void.
[Case decided at minimum that oral direction to bare
trustees to hold the trust property on different trusts which they also administer is void unless in writing.
But Green argues that case is also authority for
proposition that a direction to bare trustees to transfer the property to other trustees on different trusts is
similarly void unless in writing.
However in Vandervell
, House of Lords decided
such a direction was valid when given