trust law

I found something on trust law. For creating a valid trust there are some requirement and condition. For creating a valid trust there must present three certainties, formalities and the trust must be constituted properly.

Three certainties mean certainties of intention, certainties of subject and certainties of object. The trust is not valid where three certainties are not present: knight v knight.  In this case it was stated that the trust is not valid until three certainties present.

There should be a clear intention to create a trust and there are not exist any precatory words such as may, desire, in default, hope, etc. In Paul v constant the trust are not valid for the precatory words. It is essential that the actions of the company/settler in its interactions with the counterparty evince an unequivocal intention to establish a trust. Equally important is the requirement that such intention has been followed up with substantive action. The courts are alert to ensure that substance prevails over form, though clearly the use of trust terminology is to be advised. Setting up and operating a separate bank account, into which trust moneys are paid and then held inviolate, is a simple way of satisfying the legal requirements here.

Also for create a valid trust the subject matter should be certain. Without that the trust would fail. For example in Re London wine the trust are not valid because the subject are not certain. The trust property may take any form. It may be cash or it may be an asset. That asset may be tangible or intangible.

Finally, it is necessary to establish certainty of objects. The beneficiaries must therefore be clearly identified. In the point of fixed trust there should be a complete list of beneficiaries and for discretionary trust the is or is not test would apply. For example in Re Baden No 2 the exits a question whether the blood relatives are all in the class of beneficiaries or not.  

So without proper formalities, three certainties the trust are not constituted. And if the trust failed it goes back to the settler. Another important thing if the trust is failed for lack of intention a valid gift can be taken place. So as I think a trust is only valid if it is comply with the above mention condition.

Link: https://login.westlaw.co.uk/maf/wluk/app/document?&src=rl&srguid=ia744cc630000012c23ab46852a986c9b&docguid=I575E7EA07DFE11DFAFDB9A0B56B51DBF&hitguid=I575E7EA07DFE11DFAFDB9A0B56B51DBF&spos=2&epos=2&td=182&crumb-action=append&context=11