3 CERTAINTIES

3 CERTAINTIES

1. Certainty of Intention Clear expression of an intention to create a trust

   • RE KAYFORD - do not need to use the word trust
     • Precatory words, hope wish, desire, unlikely to create a trust
       • LAMB v EAMES
         • RE HAMILTON - Court will not allow a precatory trust to be raised without evidence of intention
           • Showing intention
             • PAUL v CONSTANCE - Money is as much yours as mine
               • JONES v LOCK - I give this to baby for himself

2. CERTAINTY OF SUBJECT MATTER

   • The property and beneficiaries interest in it must be certain
     • Fixed trusts Trustees under an obligation to distribute - Uncertainty of subject matter renders the trust void
       • Court and trustees must be able to identify land
         • SPRANGE v BARNARD - remaining part that husband did not want - unknown what would be left, trust failed
           • LONDON WINES CO - ID of specific property out of a larger amount, buyers paid for wine (tangible goods) stored in warehouse.
             • Co went bust, wine not separated from general stock, no trust.as the wine formed part of the bulk no way to know what had been paid for
               • C/F HUNTER v MOSS - Settlor owned 950 shares (intangible goods), orally declared trust for 50, but which 50. AC held a trust here
                 • As long as shares of same class in same company, no need to segregate, decision was widely criticised

3. Discretionary trusts

   • Settlor leaves property to trustees, for whoever in such shares as they see fit
     • Can affect the rules of certainty
   • RE GOLAYS WILL TRUST
     • Lady to enjoy flat for lifetime and receive a reasonable income from other properties
       • Trust was valid, executors could choose the flat and court, if required, could quantify a reasonable income
         • RE KNAPTON - Testatrix didn't specify who would get which house or how to choose. Valid trust, top of list had first choice.
           • As nieces & nephews were a class, lots were drawn on who got to choose first
             • If not clear who gets what, trust fails and results back to residue

4. Certainty of Object/Beneficiaries

   • Must be for ascertainable beneficiaries, humans or corporations, as long as have this, trust of perfect obligation
     • If trust for a purpose, trust of imperfect obligation, if doesn't fall within exceptions is void