ABSTRACT
First, there might be a valid trust in favour of the beneficiary. When the settlor has rights in that property at the time of making the promise there may be a valid trust (Re Ralli’s WT (1964)); but where the settlor has no rights in that property at the time of making the promise then there will not be a valid trust created (Re Brook’s ST (1939)). That basic distinction runs through this area of the law. So in Re Brook a son hoped that he would receive money from a power of appointment which his mother held. At the time of promising to settle any property received from his mother on trust, the son had a mere hope that his mother would pay him something and therefore had no property rights in any money at that time. In consequence, it was held that he could not have created a trust because he had no rights in property which he could have intended to settle on that trust. This is so even though the son did later receive some money from his mother after purporting to create the trust.
