Equity unit 2 - Three certainties and trusts v powers

Knight v Knight

For a valid trust to exist, the three certainties must be satisfied - intention, subject matter and object.

Lambe v Eames

A trust can be created if the settlor’s intention to create a trust is clear. But precatory words won’t be enough.

McPhail v Doulton

For a discretionary trust to be valid, Is or is not test for the beneficiaries

IRC v Broadway Cottages

If it is a fixed trust, the test of certainty of objects is the complete list test. This is where it must be possible to draw up a complete list of beneficiaries.

Re London Wine Co

For a trust over tangible property to be valid, the property must be segregated or specifically identified to ensure the beneficiaries can claim it.

Hunter v Moss

Certainty of subject matter - As long as the quantity of proportion of the property is clear this is satisfied.

Re Tuck’s Settlement Trust

If a term of a trust is uncertain, it can be clarified by considering the opinion of a third party.