This document discusses the three certainties required to create an express private trust: (1) certainty of intention, (2) certainty of subject matter, and (3) certainty of objects. It provides examples from case law rulings that help define these certainties. No particular words are needed to create a trust as long as the intention is clear from examining the trust document as a whole. The subject matter and objects must also be clear and ascertainable for the trust to be valid. Discretionary trusts provide flexibility by allowing trustees discretion over distributions.

1. 1
CREATION OF TRUST: THREE CERTAINTIES
Private ExpressTrust:
Meaning
An expressdeclarationbythe personwho
wantto create trustduringhislifetime
3 pointsthatmust be certainbefore an
expressprivate trustmustbe created
1) Certaintyof intention
2) Certaintyof subjectmatter
3) Certaintyof objects
KNIGHT V KNIGHT (1840) 3 Beav 148
1. The words usedought to be construed as
imperative. (the intentionmustbe clear).
2. The subjectmust be certain.
3. The objects or persons intendedalso must
be certain.
No particularwordsare essential
Equity looks to the substance rather than
form
Trust may be createdwithoutusingthe word
‘trust’.
1- CERTAINTY OF INTENTION
IMPERATIVES
Words mustbe imperative innature inorder
to construe the essentials tocreate trust.
Eg: I directmy trustee…/Iinstructmy trustee.
Precatory words
An expressionof hope ordesire isnot
sufficient.
Examples:“Itismy sincere wish’,‘itismy
hope…’
There is a need to see andexaminethe
constructionof trust as a whole.To show
intentionon part of testator.
RE HAMILTON (1895) 2 Ch 270
LindleyL.J: “You must take the will whichyou
have and see whatitmeans if you findno
trust init yousay so, althoughthere are some
similarwillswhichthe ctsconstruedastrust.”
Lambes v Eames (1871) LR 6 Ch. 597
Ttor gave his estate tohiswidow ‘tobe at her
disposal inanywayshe may thinkbest,for
the benefitof herself andherfamily.”
By will she gave partof the estate tooutsider
H: She had beenabsolutelyentitledtothe
propertyandthe giftwasvalid.
Re Adams
Ttor gave his real andpersonal estate tohis
wife ‘absolutelyinfull confidence thatshe
will dowhatis rightas to the disposal thereof
betweenmychildren,eitherinherlife time or
by will afterherdeath.”
H: No trust.The worldabsolutelyindicated
that the propertywasleftto the wife alone.
Comiskeyv Bowring Hanbury (1905) AC 84
Ttor lefthispropertytohiswife;‘infull
confidence that she will make such use of it
as I wouldmyself andat my death she will
devise itto such one or more of the nieces as
she may thinkfit.”
Held: There was a giftto the wife andwith
trust infavourof the niecesafterherdeath,
Peculiarsituation:If the intentiontocreate a
trust isclearit will be upheldalthoughthe
wordtrust is notexpresslyused.
PAUL V CONSTANCE(1977) 1 WLR 527
Mrs Paul livedwithMrConstance as hiswife,
He openedanaccountand toldMrs Paul, ‘The
moneyisas much as yoursas mine.Itwas
repeatedinanbr of situations.
Held: Effective declarationof trustinfavour
of the plaintiff (MrsPaul)

2. 2
De Fonsekav De Fonseka& Ors [1971]
H: Ct wouldgive effecttothe intentionof the
author of the trust as expressedinthe trust
instrument.
HAMEEDA BEE
Held: Clearand unequivocal language must
be usedto establishatrust
KISHABAI
No particularformof expressionisnecessary
for the creationof a trust,
If on the whole itcanbe gatheredthata trust
was intended;
CERTAINTY OF SUBJECT MATTER
Certaintyof subjectmatterfallsundertwo
heads;
A) trust property –
B) beneficial interest –
PALMER V SIMMONDS (1854) 2 DREW 221
A ttrix byher will gave herresiduaryto
ThomasHarrison “forhis own use and benefit
as I have full confidenceinhim,that ifhe
shoulddie without lawful issue he will leave
the bulk ofmy said residuary estate unto B,C,
D and E.(certainnamedpersons)”
No trustas there was uncertaintyof subject
matterof trust (the bulkis notknown)
RE GOLAY’SWILL TRUST (1965) 1 WLR 969
The testatordirectedhisexecutor‘tolet
Tossyto enjoyone of hisflatsduringher
lifetimeandtoa reasonable income fromhis
otherproperty.”
Held: VALID,there will be the yardstickin
whichthe Court could andwouldapplyin
quantifyingamountof reasonable income.
Effect of lack ofcertainty of subjectmatter
If a settlorfailedtospecifythe trustproperty
at all – there will be notrust.
CERTAINTY OF OBJECT
The Rules:
Trust mustbe forhuman beneficiaries.
Ascertainable beneficiariesisamustfor a
trust otherthana charitable trust.
Lack of certaintyof objects: Trust will be void.
The beneficiariesmustbe identifiable:they
can be giventheirappropriate sharesof their
for hisbeneficial interest.
Re Endacott [1960] Ch 232;
H: Ascertainable beneficiariesisamustfor a
trust otherthana charitable trust.
The test:
Dependsuponthe nature of trust.
Needto differentiate between: A fixedtrust
and discretionarytrust.
Fixedtrust
A trust where the trustinstrumentspecifies
the share (the share is fixed) whicheach
beneficiaryistotake.
Trustee(s) mustidentifyeachandevery
object.
Discretionary Trust
It isan expressPrivate Trustwhereby Trustees
are givendiscretion.Trustee hasachoice and
discretionstoexercisetodetermine the class
of object
Role of the Discretionary Trust
a) Protect trust property
A useful device forasettlorwhowishesto
protectfamilypropertyagainstspendthrift.

3. 3
b) Adaptabilitytochangingcircumstances-
family,fiscal &economic.
Allows/enablestrusteestoprovide suchsums
as the future circumstancesof the
beneficiariesrequire
3) The trusteesownthe trust'spropertyon
behalf of the beneficiaries.
The trustees are givendiscretionastowho
shall receive income
4) Beneficiary isnotthe equitable ownerof
the interest
The beneficial interestisinsuspenseuntil the
trusteesexercise the discretion.
The trustee must determine the objectwith
certainty. Failure wouldamount breach of
trust.
Two tests:
a) Criterioncertaintytest
b) in andout test
Trustee needtodetermine whetheraperson
isor isnot withinthe descriptionof relevant
class
Mc Phail v. Doulton (1970) 2 All ER 228.- HOL
Settlorexecutedadeedforafundto be held
upontrust : in favourof the staff of Matthew
Hall CoLtd andtheirrelativesand
dependants.
Issue:Voidforuncertainty? If notwhatisthe
test.
HOL : The deedcreatedthe trustand not
power.
Trustee shouldnotapproachtheirdutyina
narrow way.Insteadtheyoughttomake a
surveyof the range of objectsor possible
beneficiariesaswill enable themtocarryout
theirfiduciaryduty.
Three kinds of uncertainty
1) Semantic,conceptual orlinguistic
uncertainty
2) Evidential uncertainty
3) Administrative uncertainty
Conceptual Uncertainty
It isalso knownasadministrativeuncertain/
semantic,linguisticuncertain
Probleminthe vaguenessof language usedby
the testatorto expresshisintention.
It will be administrativelyunworkable.Eg:
‘someone underamoral obligation
Eg: My shorteremployee. /Formyold friends
and businessassociate/ Formy fans
Effect: Expresstrust fails.
It will be heldon resultingtrust
Evidential Difficulties/Uncertainty
Language usedisprecise.
Trustee will have tofindevidence tocarryout
the settlor’sinstruction.
It doesnotinvalidate adiscretionarytrust.
The court is neverdefeatedbyevidential
uncertainty
Administrative uncertainty
TUNGKUMERIAM BINTE ALMARHOUM
SULTAN AHMAD OF PEKAN & ANOR[1948 -
1949] SUPPMLJ 82
The last whetherthe word"issue"of Tungku
Omar and Tungku Meriamcomprise all the
descendantsof TungkuOmarand Tungku
Meriam or whetheritis limitedtotheir
children.
Held:in thiscase the word"issue"was
intendedtoinclude onlythe childrenof
TungkuOmar and Tungku Meriam.