Equity and Trusts Assignment Case Study Example | Topics and Well Written Essays - 2000 words

Equity and Trusts Assignment - Case Study Example The second general point is that in order for any trust provision to be valid, it must comply with the rule set out in Knight v Knight2 by Lord Langdale MR. This states that there must be three certainties in the trust provision, certainty of words, certainty of subject matter and certainty of objects.3 The certainty of words requirement was described in Re Kayford Ltd.4 as being akin to a certainty of intention. The intention is to impose a mandatory obligation on the trustees of how the trust property is to be dealt with. Regarding certainty of subject matter I do no see any issues. English law has long recognised the distinction between real and personal property, with real property being land, interests in land, and fixtures.6 Coupled with the condition that the property be in England and Wales, this description would allow for a clear identification of the trust property. Per Ungoed-Thomas, in Re Golay7 as long as property is capable of ascertainment, it will be valid. Regarding certainty of objects, if this is a discretionary trust then the requirement, as set out by the House of Lords in Macphail v Doulton8 is that it must be possible to determine whether any individual is within the class of beneficiaries or not, with absolute certainty. The Court of Appeal further clarified this requirement by stating9 that what was required with a discretionary trust was 'conceptual certainty' of the class. 'Evidential certainty' would then only be required for the members of the class that were actually to benefit, and the rest of the class, or the 'complete list' of beneficiaries need not be defined. However, since it states that the proceeds are to be distributed equally, it could also be a fixed trust, in which case the stricter requirement, known as 'complete list' certainty is required10. This means that there must be 'conceptual certainty' regarding who is or can potentially be a beneficiary. As well as this, there must be 'evidential certainty' identifying clearly, every single member of the class. Only if full certainty is present in both of these senses, will the trust be upheld as certain of objects. In this case, it should not be too difficult to establish who are the grandchildren of Marcus and therefore this provision should be successful. My shares in Delta to be sold and the proceeds, at the discretion of my trustees, to the employees and ex-employees of Delta. According to the beneficiary principle, 'for a trust to be valid it must be for the benefit of individuals'.11 This follows the simple logic that without beneficiaries, there is no owner of the property. This is the basic reason why purpose trusts, trusts that have as their goal some purpose other than the direct benefit of persons, are also invalid. However, in Re Denley's Trust Deed12 it was held that the maintenance of property for the benefit of