Three Certainties of Trust Q&A

These are first class notes on questions and answers you can potentially get for coursework or exam questions in the topic of three certainties of trust. The responses go into great depth. the Certainty of purpose: The testator's intention to establish a trust must be evident. Subject matter certainty: it must be evident what belongs in the trust and that certain assets, such a certain amount of money, are not separable. Certainty of objects: The beneficiaries (objects) must be identified with clarity. There is also some very useful academic commentary. If you want a first in Trusts then this is a good first step.

Question 1

‘The three certainties have lost nearly all their significance. Courts are now willing to find a trust based on the slightest evidence of intention to benefit others…’ Evaluate this statement by reference to decided cases.

Question 2

‘The rules relating to certainty of subject matter are illogical. There is no good reason to treat company shares and bank accounts differently from gold ingots or identical cases of wine. If a trust to provide a reasonable income is acceptable, then there is nothing wrong with a trust of the bulk of an estate.’ Discuss.

Question 3

What is the difference between fixed, discretionary trusts and powers of appointment and why would a settlor use each device? Discuss.

Question 4

Discuss how the courts have approached the various tests for certainty of objects for express trusts.

Question 5

Lovey Darling, the famous actor, has just died. His will contains the following clauses: “My trustees shall during the life of my wife, Lyn, at their absolute discretion pay all or part of the income of the trust fund to the following individuals:

a)       My wife and children.

b)      Any remoter issue who will undertake to visit my grave.

c)       To any employees or ex-employee, relative or dependant of *The Kryppt Book Shop.

d)      My valuable collection of literary manuscripts are to be left to the University of Fullchester library, subject to any friends of mine who may wish to purchase them at a price below the market price to be determined by my trustees.

e)       I leave £10,000 to provide clothing for the children of Kensal Parade.

f)       If any of these gifts fail, my trustees will make sure that the property in question goes to the Retired Actors Society.

 Advise Lovey Darling’s executors as to the validity of these bequests.

*The Kryppt Book Shop ceased trading in 2014, It has no records of its employees pre-2000.