Summary Complete Equity & Trusts
Problem Question Structure
OVERVIEW
Equity and Trusts problem questions typically require students to:
1. Identify the parties involved
2. Determine whether a valid trust has been created
3. Analyze the nature of the trust (express, resulting, constructive)
4. Assess the duties and powers of trustees
5. Consider potential breaches and remedies
6. Apply relevant case law and statutory provisions
STEP 1: INITIAL ANALYSIS – SCANNING THE
QUESTION
A. Identify the Parties
● Settlor/Testator – Creates the trust
● Trustee(s) – Holds legal title and manages trust property
● Beneficiary(ies) – Holds equitable interest
● Third parties – Banks, solicitors, other entities involved
,B. Identify the Assets
● Real property (land, buildings)
● Personal property (chattels, cash, shares)
● Intangible property (intellectual property, debts)
C. Identify the Type of Trust
Trust Type Key
Characteristics
Express Private Intentionally created
Trust by settlor;
beneficiaries
identified/identifiabl
e; certain subject
matter; valid
constitution
Charitable Trust For charitable
purposes; public
benefit; charitable
status recognized
Resulting Trust Arises by operation
of law; based on
presumed intention
(purchase money,
voluntary
conveyance, failure
of express trust)
, Constructive Imposed by law to
Trust prevent unjust
enrichment; no need
for intention
Statutory Trust Created by statute
(e.g., Trusts of Land
and Appointment of
Trustees Act 1996)
STEP 2: VALIDITY OF EXPRESS TRUSTS – THE
THREE CERTAINTIES
The "Three Certainties" Test (Knight v Knight (1840))
A. Certainty of Intention
Test: Did the settlor intend to create a trust rather than make a gift or
moral obligation?
Key Cases:
Case Principle
Paul v Constance Informal words can
(1977) create a trust if
intention is clear –
"this money is as
much yours as mine"
Problem Question Structure
OVERVIEW
Equity and Trusts problem questions typically require students to:
1. Identify the parties involved
2. Determine whether a valid trust has been created
3. Analyze the nature of the trust (express, resulting, constructive)
4. Assess the duties and powers of trustees
5. Consider potential breaches and remedies
6. Apply relevant case law and statutory provisions
STEP 1: INITIAL ANALYSIS – SCANNING THE
QUESTION
A. Identify the Parties
● Settlor/Testator – Creates the trust
● Trustee(s) – Holds legal title and manages trust property
● Beneficiary(ies) – Holds equitable interest
● Third parties – Banks, solicitors, other entities involved
,B. Identify the Assets
● Real property (land, buildings)
● Personal property (chattels, cash, shares)
● Intangible property (intellectual property, debts)
C. Identify the Type of Trust
Trust Type Key
Characteristics
Express Private Intentionally created
Trust by settlor;
beneficiaries
identified/identifiabl
e; certain subject
matter; valid
constitution
Charitable Trust For charitable
purposes; public
benefit; charitable
status recognized
Resulting Trust Arises by operation
of law; based on
presumed intention
(purchase money,
voluntary
conveyance, failure
of express trust)
, Constructive Imposed by law to
Trust prevent unjust
enrichment; no need
for intention
Statutory Trust Created by statute
(e.g., Trusts of Land
and Appointment of
Trustees Act 1996)
STEP 2: VALIDITY OF EXPRESS TRUSTS – THE
THREE CERTAINTIES
The "Three Certainties" Test (Knight v Knight (1840))
A. Certainty of Intention
Test: Did the settlor intend to create a trust rather than make a gift or
moral obligation?
Key Cases:
Case Principle
Paul v Constance Informal words can
(1977) create a trust if
intention is clear –
"this money is as
much yours as mine"
