Inter Vivos and Testamentary Trusts: Formalities and Requirements (ON)

This practice note looks at the different formalities required for inter vivos and testamentary trusts. This practice note looks at who can create a trust, who can act as trustee, and who can benefit from a trust. A settlor can create a trust as long as, among other requirements, they own the property. A trustee can deal with the property as long as they have the legal and mental capacity to do so. Finally, any person can be a beneficiary, including unborn or unascertained persons. This practice note outlines the five requirements for a valid trust. These are that the Settlor must have capacity to create the trust, the three "certainties", certainty of intention, certainty of subject matter and certainty of objects, must be met. The trust must be constituted. The formalities must be met, and the trust cannot be for an illegal purpose or a purpose contrary to public policy. Lastly, this practice note discusses the rule in Saunders v. Vautier, which sets out the conditions for the ...