Express Trusts: Declaration of Trust Flashcards
What are the 4 required elements for a valid declaration of trust?
- Identify the trustees
- Identify the property that is to be held in trust
- Identify the beneficiaries
- Identify the powers and duties that the trustees have in running the trust and administering trust property
What is a fixed interest trust?
A trust where the trustees have no discrection as to how the property is to be distributed between the beneficiaries
What are the three certainties which are required to create a valid trust, as per Knight v Knight?
- Certainty of intention / certainty of words
- Certainty of subject-matter
- Certainty of objects (i.e. the beneficiaries)
What are precatory words, and what are their implication on certainty of intention?
Words expressing wish, hope or expectation
These DO NOT create a trust - the words must be obligatory or madatory
Can the subject-matter of a trust be over part of a collection of items?
Yes, so long as the items in that collection are all identical (likely to be true only for intangible property such as shares)
For a fixed interest trust, what is required for certainty of object and what is the relevant test name?
The complete list test
Must be possible to identify every beneficiary
For a discretionary trust, what are the 3 relevant tests for certainty of object?
- Given postulant test / given individual test - trustee must have sufficient criteria to identify the beneficiaries
- Administrative workability - group of beneficiaries mustn’t be too large
- Capricious - group of beneficiaries must be rational / reasonable
What is the beneficiary principle?
A trust must be for the benefit of individuals
What is remoteness or vesting in relation to rules against perpetuities?
The trust must become unconditional within 125 years (if made after 2010)
How must a declaration of a trust over land be made?
In compliance with s 53(1)(b) LPA - evidence in writing and signed by settlor (unenforceable if not evidenced in writing)
