What is the legal effect of uncertainty regarding the property in a purported trust?
Understand the Problem
The question explores the legal ramifications when the specific property intended for a trust is not clearly defined. It presents four potential outcomes related to the enforceability, ownership, trustee discretion, or the creation of a resulting trust.
Answer
The trust fails, and the legal owner takes the property absolutely.
If there is uncertainty regarding the property in a purported trust, the trust fails because the property cannot be identified and the legal owner takes the property absolutely.
Answer for screen readers
If there is uncertainty regarding the property in a purported trust, the trust fails because the property cannot be identified and the legal owner takes the property absolutely.
More Information
In trust law, certainty of subject matter (the property of the trust) is one of the three certainties required to create a valid trust. The others are certainty of intention and certainty of objects (the beneficiaries).
Tips
A common mistake is to confuse uncertainty of subject matter with uncertainty of intention or uncertainty of objects. Each has different consequences.
Sources
- Certainty of Intention - Trusts Law - Digestible Notes - digestiblenotes.com
- THE THREE CERTAINTIES REQUIRED TO DECLARE A TRUST - cambridge.org
- Trusts: The Three Certainties | The Student Lawyer - thestudentlawyer.com
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