Nature and classification of trusts—the three certainties

Published by a ��˾��ҹ�� Private Client expert

Practice notes

Nature and classification of trusts—the three certainties

Published by a ��˾��ҹ�� Private Client expert

Practice notes

Certainty

In order for a settlor to create a private express trust the three certainties must be present:

•
certainty as to the intention of the settlor to create a trust, known as certainty of words, the trust property being intended to be kept separate from other property of the trustee
•
certainty as to the property to which the trust is to attach, known as certainty of subject matter
•
certainty as to persons or 'objects' who are intended to benefit, known as certainty of objects

Charitable purpose trusts differ from express trusts for the benefit of persons in respect of the three certainties only in that they do not need to satisfy the certainty of objects, so long as there is a general charitable intention.

Certainty as to the intention of the settlor to create a trust

The certainty of intention is satisfied if there is sufficient evidence to show that the settlor or testator clearly intended to create a trust. If the word 'trust' is used, it will normally

Jurisdiction(s):

United Kingdom

Key definition:

Settlor definition

What does Settlor mean?

A settlor is the term given to an individual setting up assets under a trust. The settlor agrees the provisions of the trust deed, appoints the trustees and specifies the beneficiaries under the trust.

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