ABSTRACT
So, what of this problem relating to certainty of subject matter? If I were to declare that the £20
I hold in my hands, in the form of two £ 10 notes, were to be settled on two completely different
trusts so that each trust should comprise a fund of £10, then there would be a problem of lack of
certainty because neither trust would know which £10 note was to be held on trust for it. The
rationale for the rule, so far as one can tell, is that a general principle which provided that it should
not matter which £10 is held for which trust would mean that in the event of an insolvency where
there were obligations to hold £30 or more on trust (such that my mere £20 could not possibly
satisfy those claims) then it would be to the disadvantage of other creditors to give effect to either
trust.
