Requirements for Creation of a Valid Trust: Declaration of Trust - The three certainties - Intention

4 important questions on Requirements for Creation of a Valid Trust: Declaration of Trust - The three certainties - Intention

When examining the words used by the owner in declaring a trust, what is required to demonstrate an intention to create a trust?

Imperative wording that demonstrates an intention to create a legally binding obligation on the trustee to hold the trust for the beneficiary.

Is it necessary for the settlor to use the word 'trust' to create a trust?

Not necessary to use the word 'trust' to create a trust (Re Kayford)

Explain how words and conduct in (Paul v Constance) were sufficient to demonstrate intention?

Both parties decided to open an account under one of the parties names. Both treated the account as a joint account, paying joint bingo winnings as well as constant mentioning of sharing the money. It was accepted that these words and conduct amounted to intention to create a trust.
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Is it sufficient to use precatory words (no force of a demand or a request) when creating an intention to create a trust?

Insufficient to use precatory and uncertain (example of words include 'in full confidence/hoping that/ believing that/ expecting that). This will not suffice to show certainty of intention (Re Adams and Kensington Vestry)

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo