What are the three certainties in trust creation?

What are the three certainties in trust creation?

• A. Intention, subject matter and objects.
• B. Income, capital and duration.
• C. Beneficiary, trustee, and property.
• D. Settlement, control, and duration.

Answer: (A)

Three certainties must be present when a trust is created: certainty of intention to create a trust, certainty of the subject matter, and certainty of the objects. Certainty of intention means there is a clear intention to impose duties on a trustee to manage property for others, not just a gift or a mere power. Certainty of the subject matter requires that the property placed into the trust is clearly identified so the trustees know exactly what is held on trust. Certainty of the objects means the beneficiaries (for private trusts) or the purpose (for charitable trusts) are clearly identifiable or ascertainable. If any of these is uncertain, the trust may fail. The option listing intention, subject matter and objects captures these three requirements, making it the best answer. The other options describe different elements or attributes of trusts, but they do not represent the formal certainties needed to create a trust.

Three certainties must be present when a trust is created: certainty of intention to create a trust, certainty of the subject matter, and certainty of the objects.

Certainty of intention means there is a clear intention to impose duties on a trustee to manage property for others, not just a gift or a mere power. Certainty of the subject matter requires that the property placed into the trust is clearly identified so the trustees know exactly what is held on trust. Certainty of the objects means the beneficiaries (for private trusts) or the purpose (for charitable trusts) are clearly identifiable or ascertainable.

If any of these is uncertain, the trust may fail. The option listing intention, subject matter and objects captures these three requirements, making it the best answer. The other options describe different elements or attributes of trusts, but they do not represent the formal certainties needed to create a trust.