Knight v Knight (1840) 3 Beav 148

Facts

• The case addressed the requirements for the creation of a valid private express trust within English equity law.
• The court considered the doctrine of trusts and the necessity for a clear legal framework to ensure effective and equitable administration of trusts.
• The central question was whether a purported trust failed for not meeting essential criteria, leading to its invalidity and unenforceability.

Issues

1. Whether the creation of a private express trust requires specific legal criteria to be satisfied to be valid in equity.
2. Whether the absence of one or more of these requirements would render a trust invalid or unenforceable.
3. How the certainty of intention, subject matter, and objects operates in the assessment of trust validity.

Decision

• The court identified and confirmed that three certainties—certainty of intention, certainty of subject matter, and certainty of objects—are required for the creation of a valid trust.
• Absence of any of these certainties results in the trust failing and being unenforceable in equity.
• The court discussed how each certainty operates and provided guidance on their practical application in subsequent cases.

Legal Principles

• Certainty of intention requires a clear and objectively demonstrated intention to create a trust, rather than merely a moral obligation or wish.
• Certainty of subject matter means the property to be held on trust must be clearly defined and ascertainable with sufficient specificity.
• Certainty of objects requires that beneficiaries be clearly identified or ascertainable, with distinct requirements for fixed and discretionary trusts.
• The "complete list" test applies to fixed trusts, requiring the possibility of compiling a full list of beneficiaries.
• The "is or is not" test, applicable to discretionary trusts, necessitates that it be clear whether any individual is or is not a member of the class of beneficiaries.
• If any one of these certainties is missing, the trust is not valid or enforceable under law.

Conclusion

Knight v Knight (1840) 3 Beav 148 is foundational in trust law, establishing the necessity for certainty of intention, subject matter, and objects for the validity of private express trusts; these principles ensure clarity, enforceability, and fairness in the administration of trusts and continue to shape equitable doctrine.