The three certainties-express trusts-trust laws and accounts, Financial Accounting

Assignment Help:

The three certainties

A trust will be valid only if the three certainties are present i.e. certainty of words, certainty of subject, and certainty of objects.
 
1. Certainty of words

  • There is no need for a settlor to use the word "trust" in order to constitute a trust; it is enough if the words used in the instrument clearly establish an intention to create a trust.
  • The words must be imperative and not merely a request i.e. precatory words.(Re Adams and the Kensington Vestry)

 

 2. Certainty of subject matter

  • Where the property subject to the purported trust cannot be identified there will be no trust.  (Sprange v Barnard).
  • Where the beneficial interests to be taken by the beneficiaries are not certain, the trust will a resulting trust for the settlor (Boyce v Boyce).

 
However there is no uncertainty in the following cases:-

  • Where the trustees are empowered to determine the beneficial interest to be enjoyed;   
  • Where the court is able to apply the maxim "Equality is Equity", and divide the property into equal shares.

 

3. Certainty of objects

The objects of a trust must be certain i.e. a trust will only be valid if it can be said with any certainty that any given individual is or is not a member of the class of beneficiaries. Generally, trusts which fail to meet this requirement are void for uncertainty.

Charitable trusts constitute an exception to this rule. However, such trusts do fail if the gift in not exclusively for charitable purposes (Re Astor's Settlement Trusts).


Related Discussions:- The three certainties-express trusts-trust laws and accounts

Balance sheet trading profit and loss, on 31.12.2001 the following trail ba...

on 31.12.2001 the following trail balance sheet was prepared from the book of raju debit credit sundry debators 50,ooo - sundry creditors -

Implement a spreadsheet to calculate payments, Tony is a salesperson at a l...

Tony is a salesperson at a local auto showroom. He asks you to assist him in developing a tool for calculating purchase and lease payments. He has already developed a draft of the

What is profitability ratios, Profitability Ratios - These ratios include...

Profitability Ratios - These ratios include the Gross profit Margin, Net profit Margin, Operating Margin, Return on Equity (ROE), and Return on Total Assets. These ratios helps t

State the role of accounting information, State the role of Accounting info...

State the role of Accounting information Accounting information has a significant role to play in reporting the extent to which different groups have benefited from the busines

Maximum loss method, a,b,c carried on business and their profit and loss ra...

a,b,c carried on business and their profit and loss ratio 3:4:5.they decided dissolve the partnership as on 1st july,2011.the following balance sheet..... creditors-10000 loan A/c-

The common stock of warner inc, The common stock of Warner Inc. is currentl...

The common stock of Warner Inc. is currently selling at $114 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share

Calculate operating cash flow , Question 1 The following information s...

Question 1 The following information should be used for questions #1 through #7: Jersies, Inc financial statement data.   2009 2010

Find the price of a treasury bond , The time t= 0 continuously compounded...

The time t= 0 continuously compounded term structure of interest rates is given by R(0 , T) = 0. 05 - 0. 005 e - 0.10 T . Find the price of a Treasury bond with exactly 3

Control of business activity, A huge number of financial ratios are in util...

A huge number of financial ratios are in utilized. They complete a broad variety of functions and objectives. Managers estimate performance and investors match their expectations,

ACCOUNTING THEORY, HOW DOES ACCOUNTING THEORY INFLUENCE ACCOUNTING POLICY M...

HOW DOES ACCOUNTING THEORY INFLUENCE ACCOUNTING POLICY MAKING

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd