Williams v Hensman (1861) 70 ER 86

Court: Court of Chancery

Basic Facts: The case concerns the severance of a joint tenancy in equity, with a party seeking to end the joint tenancy to claim an individual interest. A fund was established to provide an annuity for A during her lifetime, with the remaining principal intended for her children after her death, creating a joint tenancy among them. There were eight children involved. During A’s lifetime, they collectively authorized the trustee to invest the fund in a mortgage, including three minor children. This authorization resulted in the severance of interests for five of the children from the other three. The trustee allocated an estimated share to one child, with A covering the interest costs. Additionally, all other children agreed, both collectively and individually, not to seek reimbursement from the trustee if the share was insufficient and promised to indemnify the trustee against any claims, damages, or expenses resulting from this advance, which effectively severed all shares. One child who survived A requested her share, but payment was delayed because the trustee had mixed the fund with his own funds in the mortgage, preventing immediate conversion. Unfortunately, the child passed away before receiving the payment.

Issue for the Court: What constitutes severance of a joint tenancy?

Held: The court established that severance of a joint tenancy can occur through mutual agreement, course of conduct, or notice in writing.

 Lord Chancellor:

• Severance can occur by mutual agreement, any act that destroys the joint tenancy (like transferring one’s share), or conduct that indicates a change in intention.

• The key to severance is the intention of the parties involved and the acts performed to manifest that intention.