What are the three certainties required for a trust to be valid?

The correct answer identifies the three certainties essential for the establishment of a valid trust: certainty of intention, certainty of subject matter, and certainty of purpose.

Certainty of intention refers to the clear expression by the settlor that they intend to create a trust. This is fundamental as a trust cannot exist without a clear intention to do so. The settlor’s intention must be evident, typically through language in a will or trust document indicating they wish for assets to be held in trust for designated beneficiaries.

Certainty of subject matter pertains to the specific property or assets that are to be held in trust. There must be clarity regarding what is being placed into the trust; if the subject matter is not sufficiently defined, the trust cannot be effectively operationalized. It is critical that the property in question is identifiable to ensure proper administration of the trust.

Certainty of purpose is also essential, which means that the objective of the trust must be clear and lawful. The purpose must be outlined in a way that provides the trustee with guidance on how to manage and distribute the trust assets according to the intentions of the settlor.

Each of these certainties plays a crucial role in ensuring that the trust operates as intended and that all parties involved—settlor,