4 requirements for a valid express trust or gift;
1. Capacity
2. The three certainties (intention, subject matter, objects)
3. Compliance w legal formalities
4. Constitution of trust
(2) The three certainties
-Intention, subject matter and objects
Case: Knight v Knight (1840)
-court, settlor, beneficiary and trustee needs to know things and terms are nicely
explained
Intention:
Needs to come from the person who made the provision, their intention needs to be clear to the courts.
Intention can be evidence as equity is flexible
-needs to be clear that settlor intends to create a trust
-once done, settlor cannot change mind (bound by the trust)
-trustee have to act in accordance with the law
-property is held for the benficiary
-pros: no set formula for words are needed
-cons: rules are vague
Starting point;
Precatory words arises in the context of will provisions which set the scene for rules of certainty of
intention
rule: using words that merely convey a hope, wish or desire that the recipient of the property will deal
with it in a certain way - there will be no certainty of intention hence no trust.
Case: Lambe v Eames - talks about change in law and the courts said no, theres no trust.
Borderline case which causes trouble;
1. Capacity
2. The three certainties (intention, subject matter, objects)
3. Compliance w legal formalities
4. Constitution of trust
(2) The three certainties
-Intention, subject matter and objects
Case: Knight v Knight (1840)
-court, settlor, beneficiary and trustee needs to know things and terms are nicely
explained
Intention:
Needs to come from the person who made the provision, their intention needs to be clear to the courts.
Intention can be evidence as equity is flexible
-needs to be clear that settlor intends to create a trust
-once done, settlor cannot change mind (bound by the trust)
-trustee have to act in accordance with the law
-property is held for the benficiary
-pros: no set formula for words are needed
-cons: rules are vague
Starting point;
Precatory words arises in the context of will provisions which set the scene for rules of certainty of
intention
rule: using words that merely convey a hope, wish or desire that the recipient of the property will deal
with it in a certain way - there will be no certainty of intention hence no trust.
Case: Lambe v Eames - talks about change in law and the courts said no, theres no trust.
Borderline case which causes trouble;
