The Three Certainties

Question 1

Knight v Knight

Answer 1

Must be certainty of intention, subject-matter and object for express trusts

Question 2

Lambe v Eames

Answer 2

Precatory words (would, could) implicate a wish/desire but not obligation sufficient to establish a trust

Question 3

Re Adams v Kensington Vestry

Answer 3

‘In full confidence’ did not impose a trust - language did not indicate intention to create trust obligation

Question 4

Comiskey v Bowring-Hanbury

Answer 4

‘In full confidence’ did create a trust obligation - included imperative language

Question 5

Paul v Constance

Answer 5

Trust intention may be implied by conduct (deposited money into account which C could access)

Question 6

Re Kayford

Answer 6

Segregation of customers’ money indicated to declare trust over those funds

Question 7

Sprange v Barnard

Answer 7

‘What is left’ is not certain at the point of declaring the trust - not certain he had any obligation to preserve any of the property for the remaindermen

Question 8

Palmer v Simmonds

Answer 8

‘bulk of my residuary estate’ is subjective and too imprecise for certainty of subject-matter

Question 9

Re Golay’s Will Trust

Answer 9

‘Reasonable income’ was objectively determinable and sufficient for certainty of subject-matter

Question 10

Re London Wine

Answer 10

Tangible property must be segregated to be certain

Question 11

Re Goldcorp Exchange

Answer 11

Tangible property must be segregated to be certain, even if identical

Question 12

Hunter v Moss

Answer 12

Intangible property does not have to be segregated and identifiable (criticised decision) - all shares were of the same class

Question 13

Mac-Jordan Construction v Brookmount Erostin

Answer 13

Intangible property must come from an ascertainable fund to be certain

Question 14

Boyce v Boyce

Answer 14

Must be certain as to beneficial entitlement or how it will be determined

Question 15

Morice v Bishop of Durham

Answer 15

There must be someone in whose favour the courts can decree performance
If trust property fails for certainty of object the trustees hold property on resulting trust for the settlor

Question 16

IRC v Broadway Cottages

Answer 16

Fixed trust - fixed list test (must be able to compile complete list of beneficiaries)

Question 17

Re Gulbenkein’s ST

Answer 17

Power of appointment is valid if it can be said whether an given individual is/is not a member of the class - will not fail for impossibility to ascertain the whole class (is/is not test)

Question 18

Mcphail v Doulton

Answer 18

‘any given postulant test’ - is/is not test used for discretionary trusts

Question 19

Re Baden’s Deed Trust (no 2)

Answer 19

‘Relatives’ - conceptually certain, issues regarding evidential certainty
Megaw - will satisfy test if a substantial number can be found within the group
Sachs - up to the claimant to prove they are a beneficiary
Stamp - could only work if replaced with ‘next of kin’

Question 20

Ex parte West Yorkshire MCC

Answer 20

Administrative unworkability (too many beneficiaries) will defeat a discretionary trust

Question 21

Re Manisty’s Settlement

Answer 21

Administrative unworkability will not defeat a power - no obligation to exercise

Question 22

Re Barlow’s Will Trust

Answer 22

Gifts do not have such stringent conditions as a trust due to no obligation on the trustee

Question 23

Re Allen

Answer 23

Certainty of object in gift - anyone who can prove that ‘by any reasonable test’ they are one of the class