Re Kayford [1975]

Key Notes

• In this case, the money that was held on trust was mixed with the trustee's own funds in a bank account.

• Despite the mixing of funds, the court found that the money was still held on trust.

• The money was paid into an account that contained a small amount of the trustee’s own money, but the trustee treated this money as distinct from his other personal accounts.

• The trustee also indicated an intention not to make any further deposits into this account or withdraw money from it, signalling an intention to keep the trust funds separate and intact.

• The case is significant because it demonstrates that a trust can still exist even if the trust property is mixed with the trustee's own, provided the trustee’s intention to treat the property as held in trust is clear.