Trusts Authorities

Question 1

Knight v Knight

Answer 1

Identification of the 3 certainties in the creation of trusts: intention, subject matter and object

Question 2

Re Adams and the Kensington Vestry

Answer 2

Certainty of intention
The language should impose a clear obligation onto the trustee
Testator said “in full confidence that she would do what is right” - placed a moral obligation

Question 3

Lambe v Eames

Answer 3

Certainty of intention
Precatory words cannot be held to be a trust
“To be at her disposal in any way she may think best”

Question 4

Re Kayford

Answer 4

Certainty of intention
Do not have to verbally express it - it can be seen through a clear action

Question 5

Lassence v Tierney

Answer 5

Certainty of intention
If there is no intention to separate legal and equitable title, the donee will take the property absolutely as a gift

Question 6

Re Steele’s Will Trusts

Answer 6

Certainty of intention
Precatory language exception
Copying of words from a previous case where the wording was acceptable was evidence of intention
Need to look at context as well as language

Question 7

Midland Bank plc v Wyatt

Answer 7

Certainty of intention
Must have the intention of becoming a trust - apparent declarations are not valid
Testator did not tell the beneficiaries, and carried on using the property ‘on trust’ as a family home

Question 8

Sprange v Barnard

Answer 8

Certainty of subject matter
Need to be able to see with precision what is part of the trust
Women said that when she dies, the husband should give whatever he doesn’t want to the nieces

Question 9

Re Golay’s Will Trusts

Answer 9

Certainty of subject matter
Exception
‘reasonable income’ was clear because it allowed the trustees to make an objective assessment of what that might be
‘reasonable number’ would not have been clear enough

Question 10

Re London Wine Co

Answer 10

Certainty of subject matter
For chattels, the trust property must be segregated
The wine bottles had not been individually identified

Question 11

Hunter v Moss

Answer 11

Certainty of subject matter
For intangible property, if all shares are identical, the trust property is certain
They do not require segregation of specific identification

Question 12

Palmer v Simmons

Answer 12

Certainty of subject matter
Linguistic uncertainty
‘bulk of my residuary estate’ has no universal meaning
‘residue of my estate’, however, is calculable

Question 13

Boyce v Boyce

Answer 13

Certainty of subject matter
If the settlor allocates property, it must be certain who is entitled to what
The trust of houses gave X whichever she chose, and the rest was left to Y, but X died without selecting, which left the division unclear
Trust would have been valid if X was alive, but Y’s allocation became unascertainable

Question 14

IRC v Broadway Cottages

Answer 14

Certainty of object
For a fixed trust, we need to pass the ‘complete list’ test
Must be conceptually certain who the beneficiaries are

Question 15

Paul v Constance

Answer 15

Formality and trust
Trusts can be made orally

Question 16

Milroy v Lord

Answer 16

3 ways to transfer title without valuable consideration:
- as an absolute gift
- as a self-declaration of trust
- nominating a third-party trustee

Question 17

Subsisting beneficial interest

Answer 17

Formality in the creation of trusts
LPA 1925 s53(1)(c)
Must be made in writing

Question 18

Land

Answer 18

Formality in the creation of trusts
LPA 1925 s53(1)(b)
Need to manifest and prove it in writing