settled land

Land that is the subject of a *settlement under the Settled Land Act 1925, i.e. land in which two or more beneficial interests exist in succession to one another or land that is subject to certain other fetters on the owner’s powers. The categories are as follows. (1) Land held in trust for any persons by way of succession; for example, in trust for A for life then B for life then C in fee simple. (2) *Entailed interests. (3) Land owned subject to a *gift over on a specified event. (4) Land owned for a *determinable interest. (5) Land conveyed to a person under 18 years (a minor cannot own or convey a legal estate in land). (6) Land in which a future interest may come into possession on a specified event. For example, when land is left to A and B provided they respectively attain the age of 18, the elder is absolutely entitled to a half share on reaching 18 but may become entitled to the whole of the land absolutely if the younger dies during minority. (7) Land charged voluntarily (i.e. without *consideration) or in consideration of marriage or by way of family arrangement with payment of any rentcharge or capital sum; for example, when the owner charges his land with payment of income to his wife during her life or widowhood.

A settlement made during the life of the settlor is effected by a trust instrument and a vesting deed. The trust instrument declares the beneficial interests in the land and appoints two or more individuals, or a trust corporation (e.g. a bank), as trustees of the settlement (see *Settled Land Act trustees). The vesting deed transfers the legal estate in the settled land to the immediate beneficiary; it must also identify the trustees of the settlement. A will that effects a settlement constitutes the trust instrument; the legal estate devolves upon the testator’s personal representatives on trust to vest it, by deed or *assent, in the immediate beneficiary. When the legal estate cannot be transferred to the immediate beneficiary (e.g. because he is under 18), it must be vested in a *statutory owner.

The purpose of the Act is to balance the protection of beneficiaries with future interests against the principle that the person immediately entitled in possession should not be prevented by the existence of future interests from prudently managing and dealing with the land.