Three Certainties Essay

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Every trust must satisfy 3 certainties of intention, subject matter, and objects. it is very important that a trust satisfies the three certainties for two reasons:
-Trustees must know what their obligations are under the trust and they will be liable for breach of trust if they fail to carry out their obligations correctly. The three certainties therefore provide a trustee with a degree of protection by ensuring that their obligations are clear.
Satisfying the three certainties ensures that, if necessary the court itself will be able to administer the trust.
Trusts can be declared orally or in writing, while the three certainties apply to all but charitable trusts, you should remember that every trust will also have to satisfy the formalities requirements in respect of type the property involved. So, for example, a trust of land may satisfy the three certainties.However, if …show more content…

Every trust (with the exception of charitable trusts) must satisfy the certainty of object requirement. The certainty of objects test is different for fixed trusts and and discretionary trusts.
-Fixed trusts- the beneficial interests are fixed for, for example a trust to benefit two persons in equal shares.
Discretionary trust- this is a type of trust in which the trustees are given the power to appoint people as beneficiaries of the trust. Members of the class of potential beneficiaries do not hold any beneficial interest until trustees exercise their discretion to appoint in the beneficiaries favour . The amount the beneficiaries receive is at the discretion of the trustees.
Fixed trusts:in order to satisfy the certainty of objects requirement, a full list of the beneficiaries must be able to be created( IRC V Broadway Cottage Trust (1955), all the beneficiaries must be able to be identified.in this case all beneficiaries could be Identified so there is a fixed trust.

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