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Property of any sort can be held on trust. The uses of trusts are many and varied. Trusts can be created during a person's life (usually by a trust instrument) or after death in a Will.

Creation

Trusts can be created by written document (express trusts) or they can be created by implication (implied trusts).

Typically a trust is created by one of the following:

1. a written trust document created by the settlor and signed by both the settlor and the trustees;
2. an oral declaration;^[4]
3. the will of the settlor; or
4. a court order (for example in family proceedings).

In some jurisdictions certain types of assets cannot be the subject of a trust without a written document.^[5]

Formalities

Generally, a trust requires three certainties, as determined in Knight v Knight:

1. Intention. There must be a clear intention to create a trust (Re Adams and the Kensington Vestry)
2. Subject Matter. The property subject to the trust must be clearly identified (Palmer v Simmonds ). One cannot, for example, settle "the majority of my estate", as the precise extent cannot be ascertained. Trust property can be any form of property, be it real or personal, tangible or intangible. It is often, for example, real estate, shares or cash.
3. Objects. The beneficiaries of the trust must be clearly identified, or at least be ascertainable ( Re Hain's Settlement). In the case of discretionary trusts, where the trustees have power to decide who the beneficiaries will be, the settlor must have described a clear class of beneficiaries (McPhail v Doulton). Beneficiaries can include people not born at the date of the trust (for example, "my future grandchildren"). Alternatively, the object of a trust could be a charitable purpose rather than specific beneficiaries.