Creation of a trust orally

Unlike a trust of land, a trust of money is not required to be created or evidenced in writing. The three certainties however must be established:

No specific set of words are required in relation to certainty of intention and the word trust is also not required.

Morgan and others v Estate of Morgan (Deceased) and others [2026] 20 (Ch)

This recent case focuses on the creation of a trust and the actions and intentions of the parties involved.

Terence Morgan died intestate in April 2022. Under the rules of intestacy, his estate passed equally to his son and daughter. Terence’s daughter and his partner (Miss Fraser) were granted Letters of Administration on 4 June 2024.

Terence’s mother (Mrs Morgan) claimed that she had given Terence £20,000 in cash on or around 15 October 2021. Terence’s sister also claimed that she had given Terence £10,000 in cash around 31 August 2021. Both alleged that the common intention of themselves and Terence was that the money was to only be used to purchase a home for Mrs Morgan. Terence transferred the money to a separate bank account and remained there until he died.

Upon his death, this money was subsequently transferred to his daughter and Miss Fraser. Mrs Morgan was living in private rented accommodation and was in a poor financial position. Her husband has remained in the matrimonial home, that was sold to Terence, but he remained living there. The rent that was paid in respect of this property was insufficient to cover the mortgage.

Mrs Morgan and Terence’s sister pursued a claim that they had given Terence the money to hold on trust for them. Terence’s daughter and his partner claimed that Terence had saved money himself and that he had done so with a view to purchasing a house for his mother, but after receiving professional advice decided not to proceed.

The Judge was satisfied that the cash deposits were for the purpose of buying a house that would be tenanted by Mrs Morgan, she would not own the house, but she would have this as her home and it would be an investment for his children.

This case confirms that there are no formalities required for the creation of a trust of money as there are in a case of a trust of land. However, the three certainties must be present.