The concept of a Will Trust
Will Trust refers to a legal setting wherein a person called testator confides in the trustees by assigning or entrusting in him some specific assets or property. It is called a Will Trust because it is formed on the basis of an individual’s will. Settlor hands over the legal authority over the property to the trustees who in turn ensure its well-being in the form of income generation and capital gains and distributing the same to the beneficiaries. The trustee works under the obligation of assuring maximum benefit to the beneficiaries and performing his duties concerning the trust sincerely.
The settlor is the one who hands over the responsibility of its assets to the trustees, that can be one or more individual or a legal or financial institution specifically appointed for this purpose. At last, beneficiaries are the family members of the settlor or the people entitled by the settlor to get the benefit from the assets or property of the will trust.
Lawful creation of the Will Trust
A Will Trust has to be made in a proper legal fashion where the settlor agrees to legally place his property or assets into the trust. If he fails to vest the property into the Will Trust on the legal front, then the settlor continues to be entitled as the sole legal owner of the property and the same property cannot be called a Will Trust. If not given the attention this can emerge as a serious problem in the future where the testator will not have the lawful power to transfer the property or in the case where all the legal formalities are not properly executed.
Legal requirements-the three certainties
While a Will Trust can be formed on the basis of speech, but a written document called a trust deed is essential to have the whole procedure legally backed.
Here are the three criteria or three certainties that a Will Trust has to testify to.
Certainty of Intention
By its name, the certainty of intention clearly denotes the intent of the settlor or testator for creating a Will Trust. In case of legal proceedings, the court will closely inspect the documents to look for the statements that highlight the clear and willful intent of the testator to build a Will Trust in the first place. The trust registration deed should mention in clear, concise, and specific terms, the intent of the testator to build and transfer the legal ownership of the Will Trust to the trustee, who will hold this responsibility for the benefit of the beneficiaries.
The certainty of Subject Matter
The second certainty to be ensured for building a Will Trust is the Certainty of the subject matter. Here the subject matter is the property or assets that are subjected to be placed in the trust. The trust deed should testify the tangibility of non-tangibility of the trust created and other specifications as necessary in accordance with the subject (assets and property). Without the unique mentions of the subject matter, the trust will not be accepted as a valid Will Trust. The trustee should be utterly familiar with the property or assets that he holds under the Will Trust on behalf of the beneficiaries.
Certainty of Objects
The last certainty to be made certain is the certainty of objects. The term objects here is related to the beneficiaries as each of the beneficiaries should be easily identifiable and ascertainable by the trustee. This is done to ensure any unintended beneficiaries from getting enlisted into the list of beneficiaries by creating any loopholes. The list should mention all the beneficiaries whether they are family members, business partners, or any other dependent person on the testator.
Not conforming to the above three certainties, it is not possible to create a Will Trust and the assets or property fail to get entitled in a trust.