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KembaraXtra – Legal Terms – Precatory Trust
A precatory trust is a trust that may arise from the use of precatory words in a document.
These are words expressing hope, desire, confidence, or request that property should be used in a certain way.
Courts will only recognize a trust if the wording clearly shows an intention to impose a binding obligation.
Modern courts generally prefer to interpret such wording as creating an absolute gift rather than a trust unless the intention is unmistakable.
Important cases include Lambe v Eames and Comiskey v Bowring-Hanbury.
A precatory trust is a trust that may arise from the use of precatory words in a document.
These are words expressing hope, desire, confidence, or request that property should be used in a certain way.
Courts will only recognize a trust if the wording clearly shows an intention to impose a binding obligation.
Modern courts generally prefer to interpret such wording as creating an absolute gift rather than a trust unless the intention is unmistakable.
Important cases include Lambe v Eames and Comiskey v Bowring-Hanbury.
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