Creation of Trust

Question 1

What formalities are required to declare a trust of land

Answer 1

Declaration must be manifested and proved by some writing and signed

Question 2

What happens if formalities for declaration of trust over land are not complied with?

Answer 2

The declaration is valid but unenforceable, until the requirement is met
- validly declared but not enforceable

Question 3

When is a trust of land properly constitued?

Answer 3

A trust over land is only properly constituted when a deed of transfer (transfer form) has been validly executed and forward to HM Land Registry to register the new owner

Question 4

3 certainties

Answer 4

• certainty of intention
• certainty of subject matter
• certainty of objects

Question 5

What demonstrates certainty of intention for creating a valid trust of shares?

Answer 5

To create a valid trust, the settlor must do everything to render the settlement binding upon themselves

In the case of shares - this would be depositing an executed stock transfer form with the trustee to effect a transfer of the shares