Trusts PGDL 2024/2025 Exam Questions
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
What is an express trust? - 🧠ANSWER ✔✔A trust created intentionally by the
settlor.
What are the three certainties required to create an express trust? - 🧠ANSWER
✔✔Intention, subject matter, and objects.
What is the importance of precatory and imperative words in creating an
express trust? - 🧠ANSWER ✔✔Precatory words express a hope or desire, while
imperative words create a binding obligation.
How is the meaning of words in a written document determined when creating
an express trust? - 🧠ANSWER ✔✔By natural and ordinary meaning, relevant
contextual features, facts known to or assumed by authors, common sense, and
implied terms in formal documents.
Is the characterization of something as a trust in a formal document conclusive?
- 🧠ANSWER ✔✔No, it is not (Modelboard v Outer Box Ltd; Don King v Warren)
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,Lord Millet quote from Twinsectra v Yardley about intention - 🧠ANSWER ✔✔"a
settlor must, of course, possess the necessary intention to create a trust, but his
subjective intentions are irrelevant. If he enters into an agreement which have
the effect o creating a trust, it is not necessary that he should appreciate that
they do so: it is sufficient that he intends to enter into them".
Can implied terms be taken into account in documents when looking at
intention for express trusts? - 🧠ANSWER ✔✔YEs (Lehman Brothers)
Is use of word trust determinative of whether there is a trust? - 🧠ANSWER
✔✔No, nature of relationship is determined by substantive rights NOT label (Re
Kayford)
Cases on segregation of assets showing intention to create trust - 🧠ANSWER
✔✔Re Kayford; Mac-Jordan Construction v Brookmont Erostin; Lyell v Kennedy
(Earl of Shelbourne said seperate account "indicative of some sort of trust)
In which case was freedom to use sums credited to customer account fatal to
certainty of intention for express trust? - 🧠ANSWER ✔✔Customs and Excise
Commissioners v Richmond Theatre Management
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619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which case shows that people do not even need to know what a trust is to
intend to create one? - 🧠ANSWER ✔✔Paul v Constance (words "this money is as
much yours as mine" enough)
Cases where treating sole bank account as joint was indicative of intention to
create trust? - 🧠ANSWER ✔✔Paul v Constance; Henry v Hammond (person
"bound to keep money separate" is "a trustee of the money" per Channell J)
What is a Quistclose trust? - 🧠ANSWER ✔✔Trust combining a debt and a trust
for a specific purpose (commonly in debtor-creditor relationship, eg Foley v Hill)
Lord Mustill quote on certainty of subject matter from Re Goldcorp Exchange
Ltd 1995 - 🧠ANSWER ✔✔"It is impossible to have a title to a property when
nobody knows to which property the title relates" (confirmed in Westdeutsche
Landesbank)
Two requirements making up certainty of subject matter - 🧠ANSWER
✔✔Identifiable property and Beneficial Entitlement (latter only for fixed trust?)
What is a trust? - 🧠ANSWER ✔✔A duty and a property right
Words that are uncertain where person attempts to identify trust property by
description? - 🧠ANSWER ✔✔"bulk" (Palmer v Simmonds) or "net assets"
(Wilkinson v North)
Page 3 of 18
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
What is an express trust? - 🧠ANSWER ✔✔A trust created intentionally by the
settlor.
What are the three certainties required to create an express trust? - 🧠ANSWER
✔✔Intention, subject matter, and objects.
What is the importance of precatory and imperative words in creating an
express trust? - 🧠ANSWER ✔✔Precatory words express a hope or desire, while
imperative words create a binding obligation.
How is the meaning of words in a written document determined when creating
an express trust? - 🧠ANSWER ✔✔By natural and ordinary meaning, relevant
contextual features, facts known to or assumed by authors, common sense, and
implied terms in formal documents.
Is the characterization of something as a trust in a formal document conclusive?
- 🧠ANSWER ✔✔No, it is not (Modelboard v Outer Box Ltd; Don King v Warren)
Page 1 of 18
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Lord Millet quote from Twinsectra v Yardley about intention - 🧠ANSWER ✔✔"a
settlor must, of course, possess the necessary intention to create a trust, but his
subjective intentions are irrelevant. If he enters into an agreement which have
the effect o creating a trust, it is not necessary that he should appreciate that
they do so: it is sufficient that he intends to enter into them".
Can implied terms be taken into account in documents when looking at
intention for express trusts? - 🧠ANSWER ✔✔YEs (Lehman Brothers)
Is use of word trust determinative of whether there is a trust? - 🧠ANSWER
✔✔No, nature of relationship is determined by substantive rights NOT label (Re
Kayford)
Cases on segregation of assets showing intention to create trust - 🧠ANSWER
✔✔Re Kayford; Mac-Jordan Construction v Brookmont Erostin; Lyell v Kennedy
(Earl of Shelbourne said seperate account "indicative of some sort of trust)
In which case was freedom to use sums credited to customer account fatal to
certainty of intention for express trust? - 🧠ANSWER ✔✔Customs and Excise
Commissioners v Richmond Theatre Management
Page 2 of 18
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
, Which case shows that people do not even need to know what a trust is to
intend to create one? - 🧠ANSWER ✔✔Paul v Constance (words "this money is as
much yours as mine" enough)
Cases where treating sole bank account as joint was indicative of intention to
create trust? - 🧠ANSWER ✔✔Paul v Constance; Henry v Hammond (person
"bound to keep money separate" is "a trustee of the money" per Channell J)
What is a Quistclose trust? - 🧠ANSWER ✔✔Trust combining a debt and a trust
for a specific purpose (commonly in debtor-creditor relationship, eg Foley v Hill)
Lord Mustill quote on certainty of subject matter from Re Goldcorp Exchange
Ltd 1995 - 🧠ANSWER ✔✔"It is impossible to have a title to a property when
nobody knows to which property the title relates" (confirmed in Westdeutsche
Landesbank)
Two requirements making up certainty of subject matter - 🧠ANSWER
✔✔Identifiable property and Beneficial Entitlement (latter only for fixed trust?)
What is a trust? - 🧠ANSWER ✔✔A duty and a property right
Words that are uncertain where person attempts to identify trust property by
description? - 🧠ANSWER ✔✔"bulk" (Palmer v Simmonds) or "net assets"
(Wilkinson v North)
Page 3 of 18
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER:
619652435. TERMS OF USE. PRIVACY STATEMENT. ALL RIGHTS RESERVED
