Certainty of objects in discretionary trusts

Question 1

Postulant test

Answer 1

The trust is valid if it can be said with certainty that any individual is or is not a member of the class. To pass this test you need conceptual or linguistic certainty - the settlor must have laid down sufficient criteria in the description of objects so that it is clear what sort of person will qualify. To satisfy the test it had to be possible to fit any individual in a ‘yes’ or a ‘no’ box. If an individual goes in an ‘I don’t know box’ the trust will be invalid

Question 2

Discretionary trust for relatives employees or ex-employees

Answer 2

These are valid

Question 3

Administrative unworkability and capriciousness

Answer 3

Could make is invalid. If the definition of beneficiaries is so wide as not to form anything like a class then the trust will be administratively unworkable. E.g a discretionary trust ‘for everyone in the world’. Capriousness = irrational