Certainty of Intention

Question 1

Which case outlined the 3 certainties?

Answer 1

Knight v Knight (1840)

Question 2

What are the 3 certainties?

Answer 2

1. Intention
2. Subject Matter
3. Objects
   ALL are needed for there to be a trust.

Question 3

What are precatory words?

Answer 3

Words that’re insufficient to show certainty of intention - e.g., I hope

Question 4

What are imperative words?

Answer 4

Those that impose a certainty of intention - e.g., I direct, it is your duty etc.

Question 5

Which case tells us that precatory words are not enough for a trust?

Answer 5

Lambe v Eames (1871)

Question 6

What does the case of Shah v Shah [2010] tell us?

Answer 6

A letter being written is often enough for there to be a trust as there was sufficient certainty of intention.

Question 7

Which case tells us that precatory words are no longer considered to be enough for certainty of intention of a trust?

Answer 7

Comiskey v Bowring-Hanbury [1905]

Question 8

What does Re Hamilton (1895) tell us?

Answer 8

The wording in each case must be interpreted by the courts to ascertain whether there’s a certainty of intention.

Question 9

What does Re Steele’s Will Trusts [1984] show us?

Answer 9

• Courts will follow precedent rather than the rules around precatory words.
• It is important to analyse the words used to ascertain the Settlor’s intention.

Question 10

S.21(1) Administration of Justice Act 1982

Answer 10

Allows extrinsic evidence to be admissible to help ascertain the intention of the will.

Question 11

What case tells us that conduct can be analysed to show certainty of intention?

Answer 11

Paul v Constance [1977]

Question 12

Jones v Lock (1865)

Answer 12

Loose conversations do not show any certainty of intention

Question 13

What is needed to show sufficient certainty of intention?

Answer 13

A statement that the property is “theirs” sufficed in Rowe v Prance [1999]

Question 14

Which case tells us that equity looks to the substance of the trust and not the form?

Answer 14

Tito v Waddell (No.2) [1977]

Question 15

Snook v London and West Riding Investments Ltd [1967]

Answer 15

Shams will NOT be upheld

Question 16

ND v SD and others [2017]

Answer 16

The legal hurdles to establish a sham trust are quite high

Question 17

Which case tells us that Certainty of Intention is based on an objective assessment?

Answer 17

Twinsectra v Yardley [2002]

Question 18

Re Kayford [1975] - Certainty of Intention in a commercial context.

Answer 18

Putting money from customers into a separate bank account is enough for there to be a trust.

Question 19

What happens to a trust if there is no certainty of intention?

Answer 19

There is no trust!
- The “trust” will be classed as an outright gift to the recipient.

Question 20

S.22 Administration of Justice Act 1982

Answer 20

A Statutory intervention made to resolve a situation if there’s uncertainty of intention - e.g., using it on homemade wills.