Requirements for Lifetime Creation of an Express Private Trust - Requirements for Creation of a Valid Trust: Declaration of Trust - The three certainties
3 important questions on Requirements for Lifetime Creation of an Express Private Trust - Requirements for Creation of a Valid Trust: Declaration of Trust - The three certainties
(1) Is it important for the settlor to clearly identify the trust property? Why was the trust property uncertain in (Palmer v Simmonds) but certain in (Re Golay)
The settlor must identify the trust property clearly. For example, if it is land, which land? If it is a painting, which painting. In (Palmer v Simmonds) the word 'bulk' was uncertain. In contrast, in (Re Golday's WT) 'reasonable income' was deemed to be sufficiently objective, so sufficiently certain.
Is it important for the settlor to segregate a particular part of the trust property from the rest of the trust property? How does (Re London Wine Company) explain this? How does this contrast with Hunter v Moss?
A wine merchant held the stock of wine together in a warehouse without distinguishing which particular bottles belonged to which clients. It was held that there could not be a trust as the subject matter was uncertain. In contrast, in Hunter v Moss the shares were of the same type which meant the subject matter was sufficiently certain.
Is it necessary to define the beneficiaries with sufficient clarity?
Must define the beneficiaries with sufficient clarity, e.g., clearly naming the individual beneficiaries.
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