1. A trust is an equitable obligation, binding a person (trustee) to deal with property over which he has control (trust pro- perty), for the benefit of persons (beneficiaries), of whom he himself may be one, and any one of whom may enforce the obligation.
A trust enables a person to take the benefit of property, who is for one reason or another, unable to hold the legal ow- nership in it himself. It was found impractible to split the legal ownership in land between a number of people; therefore, land can only be held in a trust if it is to benefit more than one person. Any kind of property can be held in a trust.
The 'trust and confidence' imposed in the trustee by the creator of the trust is the core and essence of the matter. Equity will not permit the trustee to depart from his undertaking. The right of the beneficiary arose only as a sidewind of this rule.
Trusts are a peculiarity of English law and have often not been recognized elsewhere. This has been remedied by the Hague Convention implemented by the Recognition of Trusts Act 1987.
They may be divided into two main classes: private and charitable. Private trusts are enforceable at the instance of be- neficiaries, while charitable trusts are 'public' in the sense that they are generally enforce at the suit of the Attorney-Ge- neral acting on behalf of the Crown. In order to be valid they must always be of benefit to the public or to a section of it, as opposed to individuals.

2. Private trusts
a) Express private trusts: they are expressly created (certainty of words). They may be created by deed, by writing, or by will, and, in certain cases, merely orally. The intention must be absolutely plain:
aa) Certainty of words: clear intention that a trust shall arise - facts as well as words may furnish evidence of it.
bb) Certainty of subject-matter: It must be clear which items of property shall become trust property.
cc) Certainty of object: It must be clear who will be the beneficiaries. But a trust can be made subject to conditions to be satisfied by a beneficiary. Exceptions: discretionary trusts - the trustees are authorized to select the beneficiaries from a class specified by the settlor: MCPHAIL v. DOULTON (1971) - it is sufficiently certain if the trustees can say whether or not a potential beneficiary is a member of the class even if it is impossible to make a list of the members the class.
The trust must be completely constituted: the property must be conveyed to the trustees, or he must dispose of it in his will; or he may declare himself to be trustee. 'There is no equity to complete an imperfect gift'. If, however, the settlor receives valuable consideration, equity will enforce the transfer of the property in due course, and thus render the trust 'completely constituted'. 'Equity looks upon that as done which ought to be done'.
b) Implied trusts: they arise either from presumed intention (resulting) or by the operation of rules of law or equity (con- structive trusts).
aa) Resulting trusts: Where the settlement makes no provision for the exhaustion of the entire interest in the proper- ty, the unexhausted interest will revert to the settler (i.e. death of the only beneficiary). The trustee will then hold the property in trust for the settlor. Where A (otherwise than by way of loan) supplies money for B to purchase property, B will be presumed to hold the property upon a resulting trust in favour of A. A resulting trust is one imposed by law whenever justice and good conscience require, according to equitable principles: HUSSEY v. PALMER (1972)
bb) Constructive trusts: They are imposed by law independently of anyone's intention. For example, where property held in trust is (in breach of it) conveyed by trustees to someone who had notice (actual or constructive) of the trust. Here the beneficiaries are protected. What amounts to notice has been exhaustingly considered in:
RE MONTAGU'S SETTLEMENT TRUST (1987)
A lessee/trustee cannot renew the lease so as to benefit himself: KEECH v. SANDFORD (1726)
Where a person - on account of information that he receives in acting for the trust - makes a personal profit, he will be forced to account for such profits to the beneficiaries as being held by him constructively in trust. But he may also be rewarded remuneration for his services: BOARDMAN v. PHIPPS (1967) - solicitor advising benefi- ciaries. This principle has been applied a lot in respect of company executives.
Likewise, a purchaser of real property who has notice of a tenant's living there on a contractual licence may be made a constructive trustee: BINIONS v. EVANS (1972).

2. Charitable (Public) Trusts
a) General rules laid down in INCOME TAX SPECIAL PURPOSES COMMS. v. PEMSEL (1891):
aa) Trusts for the relief of poverty.
bb) Trusts for the advancement of education (not propaganda).
INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES v. A. G. (1972) - o.k.
PEMSEL case - 'socialized medicine' promoted - not (too political).
cc) Trusts for the advancement of religion.
dd) Trusts for other purposes beneficial to the community.
b) They are mostly exempted form taxes. Once, the raising of funds through shops had to benefit a charitable pur- pose directly: OXFAM v. CITY OF BIRMINGHAM DISTRICT COUNCIL (1976). But the decision was reversed by the Rating (Charity Shops) Act 1976. However, the 'routing' of the decision still bears some authority.