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Requirements of the Trust

Wednesday, February 3, 2010

Certainty 
3 certainty must be satisfied : ( based on the case Foreman v Hazard)
1. certainty of intention to create a trust
2. certainty of the subject matter
3. certainty of the object

Certainty of intention
- no particular words is required to created a trust (equity looks to intent rather that form)
- " a trust can be created by any language which is clear enough to show an intention to create it" (Halsbury's Law of Malaysia)
- the words used to convey the intention must be sufficiently expressive.
In the case of Quah Eng Hock v Ang Hoi Kiam, the court referred to the need for the words used to be clear & unequivocal & held that words indicating that the donor intended to divest himself
or herself of the beneficial interest woul be sufficient for the purpose.

In Comiskey v Bowring-Hanbury, majority House of Lords held that a trust had been created & on the death of the widow, the property would pass to the nieces as provided for in the will.
Besides, in the case Re Chianch Ke Hu, the expression " I direct my executorto distribute among such persons professing or practising the Budist religion..." was held that words were sufficiently imperative as to create a trust, although it failed as there was uncertainty in relation to the object.

To be continue..

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