Chapter 3: Outline answers to essay questions.
Introduction: the test for certainty of objects previously required a complete list of beneficiaries (IRC v Broadway Cottages). While the new test in McPhail v Doulton allowed more discretionary trusts to be upheld, the case law in this area remains uncertain and confusing.
Depending on the type of trust, there are different rules for certainty of objects. If there is a fixed trust then the share or the interest of the beneficiaries must be specified clearly in the trust. The test used for certainty of objects shows that you must be able to identify the beneficiaries.
The tests for certainty of objects differ depending on whether there is a fixed trust or a discretionary trust. This essay will consider whether the different tests applicable to fixed trusts and discretionary trusts are appropriate. Initially, the complete list test applied to both types of trusts.
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Certainty of objects (beneficiaries) This certainty relates to who the beneficiaries are. Every trust with the exception charitable trusts must satisfy the certainty of objects requirement and the certainty of objects test is different for fixed trusts and discretionary trusts.
Trust The Three Certainties An express trust will not take effect unless the three certainties are present .These certainties are (1)Certainty of words (2)Certainty of objects (3)Certainty of subject matter .It is therefore important to prove all three elements in the given scenario to prove that a trust exists.
Essay on the three certainties of trusts in Knight v Knight. Explain what is meant by the is or is not test and why is it thought preferable to the c.
A critical evaluation of the test for certainty of objects in the law of trusts and assessment of whether developments in the last half-century have had a positive or negative impact on the law.
Study L5 Certainty of Objects flashcards from Gabriela Arboleda Rojas's Southampton University class online, or in Brainscape's iPhone or Android app. Learn faster with spaced repetition.
Unlike certainty of intention or subject matter, certainty of object varies with the type of potential provision being considered. The two key areas for consideration are: (i) the Fixed Trust; and (ii) the Discretionary Trust.
Meanwhile, in establishing certainty of objects for powers, Courts took a less stringent approach in light of the fact that they do not give rise to obligatory consequences, and would simply consider whether it was determinable if a given individual was a member of the benefiting class, as per Re Gulbenkian (1970).
Certainty of objects and trustee’s duties. McPhail v Doulton emphasised that trustees of discretionary trusts are under a duty to survey the class of beneficiaries and inquire into the needs and qualifications of any beneficiary to whom an appointment of trust money was being considered.
The Reasons For The Decision Law Equity Essay Introduction. Since Knight v. Knight () it has been clear that to create a valid trust three certainties must exist. It must be shown that the settlor intended to create a trust, that the subject-matter of the trust is sufficiently identified, and that the objects of the trust are sufficiently certain.
