a thesis - Institute of Advanced Legal Studies

32 EXPRESS TRUSTS.
But there must be an intention to create a trust by the words
used. A transaction will not be deemed to create a trust, whatever
its form may be, unless it appears that a trust was intended.
(Gaskett v. Gaskell (1828), 2 You. & J. 502; Hughes v. Stubbs
(1842), 1 Hare, 476; Smith v. Warde (1845), 15 Sim. 56; In re
Weekes' Settlement, (1897) 1 Ch. 289; and see per Fry, L. J., in
In re Diggles (1888), 39 Ch. D. at p. 258; and per Rigby, L. J.,
in In re Williams, (1897) 2 Oh. at p. 28.) The mere use of the
word " trust" will not necessarily create a trust. There is no
magic in the word "trust," said Lord Hagan (7 App. Gas. at
p. 630) ; " in various circumstances it may represent many things."
" An instrument does not become a trust enforceable and cognizable
in a court of law because that word is used," said Lord Justice
James (15 Ch. D. at p. 8).
The following cases illustrate this :—
Illustrations.
1. A. directs his agent to purchase stock in the names of
himself and his wife " in trust" for his infant son. The agent
makes the investment, but no trust is expressed, because the bank
object to trust accounts appearing on their books. A. allows the
stock to remain without any trust being declared, and receives the
dividends down to the date of his death. This is not a trust.
Smith v. Warde (1845), 15 Sim. 56.
2. A., after depositing in a savings bank to the full extent
allowed by the act 9 Greo. IV. c. 92, opens another account in the
name of "A., in trust for B.," over which he has full control under
the act. His object being to evade the act and not to create a
trust in favour of B., the latter is not entitled to the amount
standing to the credit of the account at the date of A.'s death.
Field v. Lonsdale (1850), 13 Beav. 78.
3. By a royal warrant booty of war is granted to the Secretary
of State for India " in trust" for the officers and men of certain
forces, to be distributed by the Secretary of State or by any other
person he may appoint, according to certain scales and proportions;
any doubt arising to be determined finally by the Secretary of
State, or by such persons to whom he may refer them, unless the
Queen otherwise orders. This does not create a trust, the Secretary