The 3 Certainties

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  • Created by: Hope
  • Created on: 19-05-16 12:34
Which case set out the 3 certainties?
Knight v Knight
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What are the 3 certainties?
Certainty of intention, certainty of subject matter and certainty of beneficiary
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How do you look at intention?
Subject rather than form, no particular words are necessary,
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What do you need to have evidence of to show certainty of intention?
Evidence that the settlor intended to impose a binding obligation that the property was to be held on trust
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What must the settlor be certain of?
That they wish to create a trust and that they wish to bind the conscience of another
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What did the courts take as evidence before the executors act 1830?
Any expression of desire and hope, even with precatory language to create a trust,
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Why did courts used to be so lenient?
Because if they couldn't find intention, your property would go to the executor of your will, so they try to stop that from happening
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How do we approach precatory words now?
Precatory words will be taken at face value, not stretched to find another meaning
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What is a case example of a clear intention without necessarily clear words?
Paul v Constance
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Which case evidences that loose conversation won't be enough to evidence intention to create a trust?
Jones v Lock
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What are some case examples of precatory language not being enough?
Lambe v Eames, Cominskey v Bowring Hanbury
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What kind of certainty of subject matter do we need? Why?
It has to be certain enough so that the court can identify it and follow through with the trust should they need to get involved
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What is a case example of a trust failing because of the language identifying the extent of the subject matter wasn't clear?
Palmer v Simmonds
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Which case illustrates asking beneficiaries to choose, but one of them dying?
Boyce v Boyce
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Which cases show you need to segregate the subject of the trust from other stuff?
Re London Wine and Re Goldcorp
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Which case illustrates what happens to money or shares? Rule?
Hunter v Moss, the rule doesn't apply to money or shares
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How did the court distinguish these rules in Hunter v Moss?
For tangible property, where its all different, you need certainty, but for intangible stuff, like shares, they're all the same, so you don't need 50 specific shares, makes no difference
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Why must we have certainty of beneficiary?
Someone must be able to come to court to enforce the trust
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What happens if there is no human beneficiary to enforce the trust?
The trust fails and the property results back to the settlor
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In a power, which test must the trustee comply with?
The given postulant test
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What is the given postulant test?
The trustees must be able to say with certainty of every person who comes before them, whether they are in or out of the class
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Which case created this test?
Re Gestetner
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Which case confirmed it? What else is that case significant for?
Re Gulbenkian, disapproved of the broader test by Lord Denning which was to say if you can say some people were in that class, then it was cool
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How much certainty does a fixed trust require? Case authority?
A fixed list of beneficiaries IRC v Broadway Cottages Trust
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Which case said that in a discretionary trust, if the court can't step in and distribute the property, then the trust fails
Morice v Bishop of Durham
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Which test do we use in discretionary trusts for certainty of beneficiary? Authority?
The same as for powers, the given postulant test. Mcphail v Doulton
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What types of uncertainty did Lord Wilberforce say would void a trust in Mcphail?
Linguistic/semantic/conceptual uncertainty, evidential uncertainty (practical difficulty- finding them), administrative unworkability (group is too wide- Re Mansity)
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Which term was considered conceptually certain by judges, but they couldn't decide what it meant? Which case was this in? What was the outcome?
Relatives, Re Baden No 2, as posulants come forward they must prove whether or not they are a relative
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Which case created "conditional gifts"? What are they?
Re Barlow's WT, executors can give the stuff to people who can satisfy the condition- if at least one person can, we're good
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Which case supported this?
Re Allen
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Which case appointed someone to settle the matter in case of difficulty?
Re Tuck's WT
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What happens if you leave something in full confidence? Case?
Absolute gift, Re Adams v Kensington Vestry
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Which case illustrates what would happen if you leave someone to "have one of your properties and a reasonable income"?
Re Golay's WT- Trust is still certain because unlike Boyce, the person is still alive and can make a choice, and reasonable income requires trustees to make an objective assessment
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Other cards in this set

Card 2

Front

What are the 3 certainties?

Back

Certainty of intention, certainty of subject matter and certainty of beneficiary

Card 3

Front

How do you look at intention?

Back

Preview of the front of card 3

Card 4

Front

What do you need to have evidence of to show certainty of intention?

Back

Preview of the front of card 4

Card 5

Front

What must the settlor be certain of?

Back

Preview of the front of card 5
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