1. Capacity
   1. >18 years old
   2. Mental capacity
2. Certainty of intention
   1. Equity looks to intent rather than form
      1. Paul v Constance
         1. Conduct
         2. Words
   2. Trust words impose a binding duty on trustee
      1. Precatory words don't create a trust
         1. Re Adams and Kensington Vestry
3. Certainty of subject matter
   1. Certainty of beneficial interest
      1. Must be
         1. Defined
         2. Objective formula given
            1. Re Golay
            2. reasonable income
         3. Trustees to determine
            1. Discretionary trusts
4. Certainty of object
   1. Applies to gifts and trusts
   2. Charitable trusts are an exception
   3. Class of objects
      1. Fixed trust
         1. Complete list
            1. IRC v Broadway Cottages
            2. Must be possible to draw up a comprehensive list of every beneficiary or will fail
            3. Conceptual certainty
            4. Clear concepts to describe beneficiaries
            5. Evidential certainty
            6. Must be possible to identify each and every member of the class
      2. Powers of Appointment
         1. Authority to deal with property in some way
            1. Doesn't have to be exercised
            2. Must at least consider whether to exercise it. Own judgment
            3. Turner v Turner
            4. Creates a fiduciary duty
            5. Re Hay Settlement
            6. Must consider periodically whether to exercise power or not
            7. Must consider range of objects of power
            8. Must consider appropriateness of individual appointments
            9. Must not act capriciously
            10. Re Manistry's Settlement
         2. Ascertain existence from person's intention and words used
            1. e.g. 'may'
         3. Includes gifts in appointment
            1. If no appoint made
            2. Resulting trust back to settlor's estate
         4. Given Postulent Test
            1. If it can be said with certainty whether any given individual is, or is not a member of the class of objects .
            2. Re Gestetner's/ Re Gulbenkian's Settlement
      3. Discretionary trusts
         1. Given postulent test
            1. McPhail v Doulton (Main)
            2. Re Baden
            3. Stamp LJ
            4. Yes or no box
            5. 'Don't Know' Box
            6. Sachs LJ
            7. Conceptual certainty is essential
            8. Megaw LJ
            9. If substantial number can prove themselves to be within the class- would stand as trust
5. Beneficiary Principle
   1. Trust must be for benefit of ascertainable beneficiaries
      1. Morice v Bishop of Durham
      2. Failed trust
         1. Re Shaw
      3. Exceptions
         1. Charitable
         2. Re Dean
         3. Re Hooper
6. Constitution
   1. Settlor declares self trustee
      1. Trust is automatically constituted
         1. T Choithram v Pagrani
   2. Lifetime trust by transfer
      1. Legal estate in land
         1. Transferred by deed
            1. S52 LPA 1925
         2. see Mascall v Mascall
      2. Chattels
         1. Delivery
         2. Deed of transfer
            1. Jaffa v Taylor Gallery
      3. Company shares
         1. Private (inside crest)
            1. delivery of signed stock transfer form and share certificate to trustee
            2. Sent to be registered
         2. Public (outside crest)
            1. Recorded immediately
            2. No need for form
      4. Equitable interest under trust
         1. Signed written disposition
            1. S53(1)(c) LPA 1925
   3. Will trust
      1. Property vests in PRs
      2. Invariably constituted
   4. Equity will not assisted a volunteer (by interpreting a failed gift as a trust)- Milroy v Lord
      1. Every effort test
         1. Re Rose
      2. Unconscionable to revoke
         1. Pennington v Waine
      3. Strong v Bird
         1. D intends to make a gift but is invalid and fails to comply with formalities to transfer legal title
         2. Intention must be to make immediate gift
            1. Re Freeland
            2. "As soon as I can get (the car) on the road"
         3. Intention must remain unchanged until dying
         4. D dies and donee is appointed donor's executive. Vests in donee and gift perfected
7. Formalities
   1. Lifetime Trust
      1. Trust over personalty
         1. No formalities
         2. If using trustee. Must transfer property to constitute trust
            1. Must use correct formalities
         3. If declares self as trustee, is disposing of subsisting equitable interest
            1. S53(1)(C) LPA 1925
            2. Signed and in writing
      2. Trust over land
         1. S53(1)(B) LPA 1925
            1. Signed by settlor
            2. Evidence in writing
      3. Settlor's equitable interest
         1. If seperate from legal title
            1. S53(1)(C)
            2. Can direct trustee of own interest to hold trust property on trust for another
            3. Grey v IRC
            4. Oral declaration was a disposition of interest
            5. BUT failed S53(1)(C) formalities
         2. If transfers legal and equitable interests at same time
         3. Vandervell v IRC
         4. S53(1)(C) won't apply
   2. Will
      1. Must be in writing
      2. AND signed by testator
      3. AND signed by two witnesses
8. Perpetuities
   1. Trusts created prior to 6th April 2010
      1. 80 years
   2. Trusts created prior after PAA 2009
      1. 125 years
9. Certainty of trust property
   1. Hunter v Moss
      1. Shares were indistinguishable so no need to segregate
   2. Re London Wine Company
      1. Must be possible to identify and segregate specific property
      2. Chattels- Wine