Certainty of objects in fixed trusts

Question 1

Key point - resulting trust

Answer 1

Where a trust fails due to uncertainty of objects the trustees hold the trust property on a resulting trust for the settlor, if there is no such beneficiary then it would pass to the statutory next of kin on intestacy

Question 2

Fixed trusts

Answer 2

Under a fixed trust the trustees have no discretion as to how the trust property is to be allocated between the beneficiaries. The settlor has stipulated once and for all who the beneficiaries are and the proportions in which they will share the trust property. Outright gifts are likely to be fixed

Question 3

Certainty of objects test

Answer 3

The complete list test. It must be possible to draw up a comprehensive list of each and every beneficiary otherwise the trust fails. The description of beneficiaries must have conceptual certainty - the settlor must define the objects using clear concepts so that the trustees know what type of person they are looking for. Also need evidential certainty - only possible if you can identify each and every member of the class - if there is no evidence to say whether a particular individual qualifies as a beneficiary or not a fixed trust is void