Certainties

All 3 certainties must be present for...
a valid private express trust
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Do we need to establish certainty of objects for charitable trusts?
No!
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What is the principle set out in Knight v Knight?
Trust must comply with the three certainties laid out in this case
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Which case provides the three certainties?
Knight v Knight?
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What are the consequences for lack of certainty?
If property is given to a third party - absolute gift, If S has retained legal title, property will remain with him
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What if there is no certainty at all?
There will be no trust
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What does certainty of intention tell us?
Settlor must intend to create a trust as opposed to another relationship
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Intention can be expressed or inferred. True or False?
True!
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What is the test for certainty of intention?
There is a clear intention the property is to be held on trust for a third party.
9 of 100
Do parties need to use the word 'trust'?
No!
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What was the decision in Paul v Constance?
'Money is as much yours as it is mine' is sufficient
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What is the rule for sham declarations?
They will not be upheld.
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What are the facts of Midland Bank v Wyatt?
Husband and wife entered into deed of trust in relation to their property to defeat husband's creditors.
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Does the trust have to be in writing?
No!
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Imperfect gifts cannot be...
rendered as a trust.
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What is an immediate gift?
Donor intends to dispose of all rights of the property
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What is a trust?
Testator intends to retain rights subject to a trust.
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What is the decision in Jones v Lock?
The gift failed because no trust was intended
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What are the facts of Richards v Delbridge?
Tenant sought to transfer business premises to his grandson, but did not execute conveyance to transfer legal title
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What is the decision in Richards v Delbridge?
The gift failed, courts cannot regard a failed transfer as a declaration of trust
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What are precatory words?
Words of hope and desire.
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Give an example of precatory words.
"In the expectation that"
22 of 100
Precatory words alone are sufficient to show intention. True or false?
False!
23 of 100
What are the facts of Lambe v Eames?
Testator left his estate to his widow 'to be at her disposal in ways she may think is best to benefit herself and her family'
24 of 100
What is the decision in Lambe v Eames?
This was a precatory expression and did not show intention, the widow took the gift absolutely
25 of 100
What are the facts of Adams & Kensington Vestry?
T's estate devised by will to absolute use of his widow 'in full confidence she will do what is right as to disposal between my children either in her lifetime or by her will'
26 of 100
What is the decision in Adams v Kensington Vestry?
They were words of aspiration and did not impose a legal obligation on his widow
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What are the facts of Comiskey?
Testator made a gift to his wife 'in full confidence she would use the gift as T would have, and at death it will devise to the testator's nieces as the wife saw fit.
28 of 100
What are the facts of Re Hamilton?
T left a legacy to his nieces with 'i wish them to'
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What is the decision in Re Hamilton?
There was no trust and the daughter took the property absolutely
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What is the principle set out in Re Steeles WT?
Courts must look to see if the facts are the same as a previous case. If they are, they should go with the earlier decision
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How does an inferred intention arise?
Arises only partly from the language used
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What are the facts of Gold v Hill?
Gilbert took out a life insurance police and named Gold as the beneficiary. He also identified him as the executor and told him he wanted insurance money to be used to look after his mistress & none to his ex wife, who was beneficiary under his will.
33 of 100
What is the decision in Gold v Hill?
The conversation nominated Gold as a trustee
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What is segregation of funds?
Property is transferred and segregated from other funds in the shares, expressed that it be held subject to restrictions
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What if there is no certainty of intention?
There will be no trust and the gift will be taken absolutely
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What if there is no certainty of intention and no gift?
Property will remain in the settlors estate
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Certainty of subject matter must be...
any existing property.
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What is the principle set out in Williams v IRC?
Subject matter must be distinguished from future property, which cannot be subject matter
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Trusts can be declared over which type of property?
All types of property
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Property must be...
identifiable
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Settlor must provide means...
by which interest of the beneficiary can be ascertained.
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What are the facts of Macjordan v Brookmount?
A building company provided that the employer would retain 3% as a trustee but no separate fund was set up
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What is the decision in Macjordan v Brookmount?
The source of trust was not identified, there was nothing upon which a trust could be based
44 of 100
How do we know what is certain?
Words be S must identify property or provide means through which it can be ascertained
45 of 100
What are the facts of Palmer v Simmonds?
Testator left his residuary estate to his friend Mr H, subject to 'if he dies childless he will leave the bulk of my estate to' 4 named persons
46 of 100
What is the decision in Palmer v Simmonds?
'bulk of my residue' was not conceptually certain
47 of 100
What are the facts of Sprange v Bernard?
T left husband shares of £300 'for sole use & at his death that he does not want for his own use to be divided between' her brother and sisters
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What is the decision in Sprange v Bernard?
Husband was absolutely entitled to shares; it was uncertain what would be left on trust for siblings after death
49 of 100
What is the principle set out in Re Golay's WT?
'reasonable income' is something that the court can quantify
50 of 100
What are the facts of Re London Wine?
A company carried stocks of wine in multiple warehouses. Wine was sold but remained stored by the company, and customer wine was not separated from the rest of the stock
51 of 100
What was the issue in Re London Wine?
Whether the wine was held on trust for the customers or whether the company creditors could take it
52 of 100
What is the decision in Re London Wine?
Customer could not say that they had bought any specific bottle of wine - no trust was created
53 of 100
What is the principle set out in Re Clifford?
Segregation does not apply to testamentary trusts, money, shares or choses
54 of 100
What does the Sale of Goods Amendment Act tell us?
If someone has paid for ascertained goods, they are deemed to have property rights in them
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What are the facts of Hunter v Moss?
Mr H was entitled to 50/950 shares under his contract of employment. Mr M did not identify which shares were subject and later sold them, keeping the proceeds for himself
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What is the decision in Hunter v Moss?
Mr H could claim the shares
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Each beneficiary share must be allocated. True or false?
True!
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What are the facts of Boyce v Boyce?
Fixed trust was set up by will on death of T. The property was two houses and there wee 2 named beneficiaries - M&C. M was to choose which house she wanted and the other was to be held on trust for C. M died without making a choice.
59 of 100
What is the decision in Boyce v Boyce?
It was impossible to say which house C would have, so the trust failed for uncertainty
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What happens if there is no certainty of subject matter?
It will be a gift to the donee absolutely, or it will be held on resulting trust for the settlor
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What does certainty of objects tell us?
There must be beneficiaries who are certain
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What is the principle set out in Morice v Bishop of Durham?
There must be someone who can enforce the trust.
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How must the beneficiaries be identified?
Individually or as a member of a defined class
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What is conceptual certainty?
Description of beneficiaries must be conceptually certain when the trust is created
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What are the facts of Re Steel?
A trust of a residuary estate was bequathed to benefit 'beneficiaries who have only received small amounts'
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What is the decision in Re Steel?
'small amounts' did not define class, it only provided a motive
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What are the facts of Re Barlows WT?
This involved the validity of a trust to 'old friends'
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What is the decision in Re Barlows WT?
This rendered the trust conceptually uncertain, it was impossible to say who was intended to benefit
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What are the facts of Re Wright WT?
There was a trust to benefit 'those who have helped me or my husband'
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What is the decision in Re Wright WT?
The trust was uncertain as 'help' could have meant anything due to its broad meaning
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What are the facts of Re Baden's Deed Trusts?
The issue was whether 'relatives & dependant's' made a trust conceptually uncertain
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What is the decision in Re Baden's Deed Trusts?
The expressions were certain, the court could determine who were relatives and dependants
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What are the facts of Gold v Hill?
The beneficiaries were 'Carol and the kids'
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What is the decision in Gold v Hill?
'Kids' was uncertain as he had children from previous relationships
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What is the rule for certainty of objects?
The complete list rule
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What is a fixed trust?
The ID and interest of the beneficiary is set out in the trust instrument
77 of 100
What is the principle set out in Morice?
Trustees must be able to draw up an exhaustive list of beneficiaries. If not, the trust fails
78 of 100
What is the rule for certainty of objects for mere powers?
The 'is or is not' test
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What is the principle set out in Re Gesteners?
The test requires that T can say with certainty who is or is not a member of a class of potential rights
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What if there are untraceable beneficiaries?
Provided the beneficiaries are defined, the trust will not fail
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Which case set out the rule for untraceable beneficiaries?
Re Benjamin
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Can the evidentually uncertain be rendered certain?
Yes - trust can allow trustee to settle dispute as to whether a person is a beneficiary
83 of 100
What are the facts of Re Leek?
The object of the trust expressed to be 'such other persons as the company may consider to have a moral claim'
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What is the decision in Re Leek?
The trust was upheld - the trustees were made arbiters
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What is the rule for certainty of objects for discretionary trusts?
The class test
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What is a discretionary trust?
The trustee is given discretion to select who will benefit under the trust
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What is the principle set out in Mcphail v Doulton?
The test for discretionary trusts is the same for mere powers (is or is not test)
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What is the principle set out in Re Badens WT?
It is up for the claimant to prove he is within a class
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What are the facts of Re Barlows WT?
T bequathed paintings to specified individuals, and for the remainder, directed the executor to sell the paintings 'for any friend of mine who may wish to do so' could buy paintings at less than market price
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What is the decision in Re Barlows WT?
The trust was upheld - complete list of friends was not needed
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The term 'friend' is...
sufficiently uncertain
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If language used to define a class is open to interpretation...
the gift will be void.
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What is the principle set out in Re Tucks?
Uncertainty can be cured if a third party can define class
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What is evidential uncertainty?
Evidence to determine class is incomplete if records have been lost
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Evidential uncertainty applies to...
fixed trusts.
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What if a trust is 'administratively unworkable'?
The width of class specified is too large
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What are the facts of Gibbs v Harding?
The objects were defined as 'the black community of' 4 different locations
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What is the decision in Gibbs v Harding?
The class was too wide to sustain a valid private trust, but was held as a charitable trust.
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What is meant by 'capriciousness'?
There is no rule that requires a disposition to be sensible, but the trust will be void if it is capricious.
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Other cards in this set

Card 2

Front

Do we need to establish certainty of objects for charitable trusts?

Back

No!

Card 3

Front

What is the principle set out in Knight v Knight?

Back

Preview of the front of card 3

Card 4

Front

Which case provides the three certainties?

Back

Preview of the front of card 4

Card 5

Front

What are the consequences for lack of certainty?

Back

Preview of the front of card 5
View more cards

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