The Three Certainties: Key Elements in Establishing Trusts

Definition & Meaning

The term "three certainties" refers to essential requirements in trust law that must be met for a trust to be valid. These requirements are:

  • Certainty of intention: It must be clear that the person creating the trust intended to establish one.
  • Certainty of subject matter: The property or assets included in the trust must be clearly defined.
  • Certainty of objects: The beneficiaries of the trust must be clearly identified.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples to illustrate the three certainties:

  • Example 1: A person explicitly states in their will that they wish to create a trust for their children, specifying the family home as the trust property. This clearly demonstrates certainty of intention, subject matter, and objects.
  • Example 2: A donor decides to create a trust for a charity but fails to specify which charity. This lack of clarity regarding the beneficiaries fails the certainty of objects requirement. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Requires explicit language for trust creation in wills.
New York Has specific statutory requirements for trust property identification.
Texas Allows for oral trusts in certain circumstances, but clarity is still essential.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Express Trust A trust explicitly created by the trustor's declaration. Requires all three certainties to be valid.
Implied Trust A trust created by the actions or circumstances of the parties involved. Does not require explicit intention; relies on inferred intent.

What to do if this term applies to you

If you are considering creating a trust, ensure that you clearly outline your intentions, specify the trust property, and identify your beneficiaries. Using US Legal Forms can help you find the right templates to create a legally sound trust. If your situation is complex, consulting with a legal professional is advisable.

Quick facts

  • Typical fees: Varies by state and complexity of the trust.
  • Jurisdiction: Varies by state law.
  • Possible penalties: Invalid trust may lead to disputes among beneficiaries.

Key takeaways