Chapter 1: Express Trusts: Declaration of Trust

Comprehensive practice flashcards reviewing express trusts, declaration of trust, the three certainties, beneficiary principle, perpetuities, and legal formalities.

What is the key characteristic of a fixed interest trust, and how are shares allocated if the trust document is silent?

The settlor fixes who benefits and in what shares. If silent on shares, the beneficiaries take in equal shares.

How does a discretionary trust operate in relation to beneficiaries and share allocation?

The trustees choose who in the class benefits and how much they receive (e.g., "…for such of my children and in such shares as my Trustees think fit").

What are the four components identified by a declaration of trust, and what additional requirement makes a trust enforceable?

A declaration of trust identifies the trustees, property, beneficiaries, and powers. To be enforceable, the trust must also be constituted.

Which case established the requirement of the three certainties for an express trust?

Knight v Knight

Under certainty of intention, does a settlor need to use the word "trust" to create an express trust?

No, the word "trust" is not needed (Paul v Constance); words or conduct must simply impose a duty to hold property for someone else.

What is the legal consequence of using precatory words (such as hope, wish, or expectation) in a disposition of property?

Precatory words create no trust, so the transferee takes the property as an absolute gift.

Can future property be the subject-matter of an express trust?

No, trust property must be identifiable and currently owned; future property cannot be held on trust.

Why is a disposition of "the residue" valid for certainty of subject-matter, while "the bulk of my estate" fails?

"The residue" is legally certain and ascertainable, whereas "the bulk of my estate" is too vague and uncertain.

What rule governing certainty of subject-matter for tangible collections was established in Re London Wine?

A trust of part of a tangible collection (such as "some of my silver") fails unless the items are segregated.

How does Hunter v Moss distinguish identical intangible property from the rule on tangible goods in Re London Wine?

Identical intangibles, such as shares, do not require segregation for certainty of subject-matter to be satisfied.

What are the legal consequences if certainty of subject-matter fails for a self-trustee, a third-party trustee, and uncertain beneficial interests?

A self-trustee remains absolute owner, a third-party trustee takes everything absolutely, and uncertain beneficial interests result in a resulting trust for the settlor.

What test applies to certainty of objects in a fixed interest trust, and what certainties does it require?

The complete list test applies; it requires both conceptual certainty and evidential certainty.

What test applies to certainty of objects in a discretionary trust, and what are its requirements?

The given postulant test applies; it requires conceptual certainty, but evidential certainty is not required.

What two extra hurdles must a discretionary trust overcome regarding certainty of objects?

It must satisfy administrative workability (the class must not be hopelessly wide, e.g., West Yorkshire inhabitants) and must not be capricious.

What is the consequence if a beneficiary under a fixed interest trust is merely hard to trace?

A beneficiary who is merely hard to trace does not defeat a fixed trust; the trustees can seek court guidance.

What is the perpetuity period for remoteness of vesting for trusts created on or after 1 April 2010?

Interests must vest within $125\text{ years}$.

What formal statutory requirement applies to declarations of trust over land under s 53(1)(b) LPA 1925?

The declaration must be evidenced in signed writing containing all material terms (trustee, property, beneficiaries, and interests); otherwise, the trust is unenforceable.

According to Hudson v Hathway, what constitutes a valid signature in an email for trust formalities?

A typed name, initials, or an auto-signature block counts as a signature, whereas an email address alone does not.

According to Gill v Thind, when are subjective intention and subsequent conduct admissible in relation to declarations of trust?

Subjective intention and later conduct are inadmissible for a documentary declaration, but they are admissible for an oral declaration.

What is the recommended sequence for analyzing the three certainties in an exam context?

Run the certainties in the following order: intention, subject-matter, and objects.