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In 2001, Sarah Hutchinson co-purchased a property at Rapid Creek with her husband. After their divorce in 2008, she became the sole owner. In 2012,

In 2001, Sarah Hutchinson co-purchased a property at Rapid Creek with her husband. After their divorce in 2008, she became the sole owner. In 2012, she sold the Rapid Creek property for $580,000 and used part of the proceeds to buy a property in Nightcliff for $370,000. In 2013, Sarah made gifts of $15,000 each to her three children: Denise, Dianne, and Troy, after selling the Rapid Creek property. Later that year, she purchased another property in Alawa with her son, Troy. Sarah provided the deposit of $100,000, but the property was purchased in Troy's name. Sarah ran a dress and tailor shop until 2020, when she had to close it due to the pandemic lockdowns. During this period, she faced financial difficulties. More devastatingly, her daughter Dianne struggled with her marriage, facing financial instability. Additionally, Dianne and her husband, Mario, had health problems and needed help caring for their three children. To assist, Sarah frequently travelled between her home and theirs. To help her daughter's family and reduce her travel burden, Sarah sold her Nightcliff property and contributed financially towards purchasing a new, larger property for them in Casuarina. The purchase price of the property was $600,000, of which Sarah contributed $300,000. Mario and Dianne, Sarah's daughter and son-in-law, secured the remaining balance through a mortgage from a bank, bringing the total purchase price of the property to $600,000. The ownership of the house was titled solely under Mario and Dianne's names. Driven by the desire to be closer to her family and potentially reduce her living expenses, Sarah relocated to the Casuarina property in 2021. This move held the promise of a mutually beneficial arrangement. Sarah anticipated becoming a cherished part of her daughter's household, potentially offering childcare and companionship while simultaneously being relieved of the burden of rent, taxes, and other financial obligations. Mario and Dianne, enthusiastic about Sarah's presence, actively encouraged her to stay. They envisioned Sarah's help with their children as a crucial factor, allowing them to dedicate more time and effort towards their flourishing small business. With the flexibility of working extended hours, including nights, they believed they could significantly increase their profits and ensure successful mortgage repayments. To enhance her sense of privacy while still being readily available for her grandchildren, Sarah undertook the construction of a granny flat on the Casuarina property in 2022. This addition provided a designated space for her to unwind when not actively involved in childcare duties. The initially harmonious situation between Sarah, Dianne and Mario unfortunately turned sour. Their relationship reached a breaking point, resulting in Mario filing for divorce in January 2024. This unexpected turn of events left Sarah in a precarious position and forced her to vacate the Casuarina property in March 2024. Facing homelessness, Sarah sought legal advice from your firm. Her primary concern is whether she has any legal claim to either the Casuarina property, where she resided with her daughter's family, or the Alawa property, which she co-purchased with Troy. Your team leader asked you to prepare a report advising Sarah based on principles relating to resulting trusts and constructive trusts supported by relevant case law. The report must include the following:

  1. Identifying, discussing and analysing important themes and foundational concepts of trust law.
  2. Describing and evaluating the purpose, structure and general features of trust law and giving practical meaning and application to its elements.
  3. Applying legal problem solving skills by using trust law principles and case law and providing advice on hypothetical problems or in respect of actual case law situations.

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