In wills and trusts, the "three certainties" are essential for validity: Certainty of Intention (clear intent to create a trust), Certainty of Subject Matter (clear identification of trust property), and Certainty of Objects (clear identification of beneficiaries). When these fail, or a document is used to deceive (like a sham trust to avoid creditors), it can be challenged as fraudulent, potentially invalidating the arrangement and allowing assets to be claimed by others, despite written documents. Click here.

 In wills and trusts, the "three certainties" are essential for validity: Certainty of Intention (clear intent to create a trust), Certainty of Subject Matter (clear identification of trust property), and Certainty of Objects (clear identification of beneficiaries). When these fail, or a document is used to deceive (like a sham Will or Sham trust to avoid creditors), it can be challenged as fraudulent, potentially invalidating the arrangement and allowing assets to be claimed by others, despite written documents. 

The Three Certainties

1. Certainty of Intention: The person creating the trust (settlor/testator) must clearly intend to impose a legally binding obligation, not just express a hope or wish (precatory words).
2. Certainty of Subject Matter: The property to be held in trust must be clearly defined (e.g., specific assets, not vague amounts).
3. Certainty of Objects: The beneficiaries must be clearly identifiable, even if they belong to a defined class (e.g., "my children" is clearer than "my friends"). 

Fraud & Sham Trusts

• Sham Trusts: A trust is a sham if it's a pretense, created to give a false impression, often to hide assets from creditors, avoid tax, or in divorce proceedings.
• Fraudulent Attempts: If a trust is set up with a hidden motive (like evading business debts) and the beneficiaries aren't truly intended to benefit (as in Midlands Bank v Wyatt), courts can declare it a sham and set it aside.
• Challenge: Individuals (like creditors or spouses in divorce) can challenge a trust's validity by proving it lacks one of the certainties or is a sham, even if it looks formally correct on paper. 

In Summary

While documents provide the framework, the substance of a trust is key; unclear language, hidden motives, or attempts to deceive through documents can lead to the trust being deemed invalid and potentially fraudulent, allowing for its reversal in court.