Lecture 2: Certainty of Intention

What are the three certainties?

• Intention / Words

• Subject Matter

• Objects

• Knight v Knight 1840

What is the Certainty of Intention?

• It must be clear that the settlor intended to create a trust

• Consider whether the settlor intended to compel the trustee to hold the property for the beneficiary

• No set formula for words needed “money is as much yours as it is mine” Paul v Constance

Precatory Words

• Words which convey a hope wish or desire that the donee will deal with the property in a certain way

• cannot be held as creating a trust

Trusts in a Commercial Context

Trust may arise where:

• Funds are transferred and segregated and both parties intended money to be held on trust

• Both parties agree restrictions to operate on recipients ability to use money

• Unilateral act by recipient enough to demonstrate intention to create trust

Lack of Certainty of Intention

• basically there is no trust then and property is back to settlor or settlors estate if the settlor has died