Certainties Of Trust Flashcards
How many certainty are there?
Three
1.
Certainty of words( intention)
2.
Certainty of subject matter
3.
Certainty of object
CERTAINTY OF WORDS( INTENTION)
Are technical expression necessary for the creation of a trust?
No
What must the testator shoo?
The settlor or testator must have shown an intention to create a binding dirty to carry out his wishes and his words must show it
Will the use of precatory words create a trust?
No it won’t
Examples of precatory words?
Hope, wish, recommend, in full confidence
In earlier times do the court the courts of equity infer a trust a trust from precatory words?
Yes
Modern approach
Against it
Case?
Re Steele’s will Trust
What was held inter case?
Held that if a particular form of words creates a terabyte, then the use of the identical words today will also create a trust
Case?
Re Adams and Kensington vestry
What happened in the case?
The testator gave property to his wife ‘in full confidence that she will do what is right as to the disposal there of between my children’
What was held?
There was no trust in Favour of the children, and the wife took beneficially
CERTAINTY OF SUBJECT MATTER
This is considered two heads namely?
Certainty as to property
Certainty as to beneficial interest
Certainty as a property
The instrument creating the trust ?
Make it clear what property is to be bound by the trust
What happens where the property is not defined?
No trust is established
Case? Judge?
Mussoorie Bank v Raynor
Sir A Hobhouse
What happened ?
The testator gave property to his wife and directs that ‘such part of it as may not be required by her’ shall after her death, be held on trust for his children
What did the court hold?
Held that the trust for the children was void for uncertainty
Where the testator, after making an absolute gift to his wife, directed that at her death ‘such parts of my estate as she should have sold or disposed of’ should be held on trust for certain other persons?
There is uncertainty of property
Case?
Re Jones
Case?
Palmer v Simmonds
What was held in the case?
Held that a declaration of trust as to ‘the bull of my residual you estate’ failed to create a trust
Certainty as to beneficial interests
Must the beneficial interest to be taken by each beneficiary be certain?
Yes
Case?
Boyce v Boyce
What are the facts of the case?
A testator devised all his houses to trustees in trust for his wife for life and after her death in trust to convey one of them to his daughter Maria whichever she might choose, and to convey the others to his daughter Charlotte. Maria died in the testator’s lifetime and therefore was not able to choose any particular house
What did the court hold?
The court held that Charlotte couldn’t claim since the beneficial interests were uncertain
Exception?
Where the trustees are given a discretion as to the precise amount that each beneficiary is to receive
Known as?
Discretionary trust
The principle of certainty of beneficial interest is in which case?
Lassence v Tierney
What is the principle?
Where property is given on trust for a principal beneficiary , subject to the rights of other beneficiaries to an uncertain part of the property, the uncertain trust will fail and the principle beneficiary will be entitled
What will the court apply as to uncertainty ?
The maxim ‘ Equality is Equity’ and divide the property equally btw the beneficiaries
CERTAINTY OF OBJECTS
What does this requirement mean?
Means that the identity of the beneficiaries must be described and indicated with certainty
Will trust for vague purposes fail?
Yes
Exception?
If the purpose are charitable
Case?
Re Astor’s Settlement Trusts
What was held?
A trust of a large fund for the purpose of ‘the maintenance of good understanding between nations’ and ‘the preservation of the integrity of newspapers’ was held void
Is there a valid trust where property is given to a vague class of beneficiary such as ‘dependent’
No
Why?
Because it isn’t possible to ascertain precisely which person would come within the definition of ‘dependent’
Cases?
Re Ball
Sase v Moore
What was held to be held on trust for?
Me
What was necessary where the trustee is required to be able to ascertain all the members of a class of beneficiaries?
To be able to ascertain all the members of the class at the time the settlement came into effect
Case?
I.R.C v Broadway Cottages Tfust
Is this an old law?
Yes
What is the new law?
Trust is valid if it can be said with certainty that any given individual is or is not a member of the class
Case?
Mcphail v Doutton
