Lambe v Eames (1871)

Transfer of Property · Creation of a Trust

Facts.

A testator gave his estate to his widow “to be at her disposal in any way she may think best, for the benefit of herself and her family.” The widow, by her own will, gave part of the property outside the family. It was argued that the words imposed a binding trust in favour of the family.

Issue.

Do words of wish, confidence or recommendation (“precatory words”) annexed to an absolute gift create an enforceable trust?

Held.

The Court of Appeal in Chancery held they did not. The words were not imperative; they expressed a hope, not a binding obligation, so the widow took absolutely and could dispose of the property as she wished. Precatory words create a trust only where a real intention to impose an obligation, with certainty of subject and object, is shown.

Why it matters.

It marks the turning point away from readily inferring precatory trusts and states the modern test for them — central to the “kinds of trusts” topic and the certainty-of-intention requirement.

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