Trusts of imperfect obligation - i.e. trusts where there is no
certainty of objects - is it possible to have a purpose trust (non charitable)?
Descripción
Mapa Mental sobre Trusts of imperfect obligation - i.e. trusts where there is no
certainty of objects - is it possible to have a purpose trust (non charitable)?, creado por sarah leach el 09/05/2015.
Trusts of imperfect obligation - i.e. trusts where there is no
certainty of objects - is it possible to have a purpose trust (non
charitable)?
Problems
Unenforceability
For a trust to be valid there must be individuals for whose
benefit it is created - human beneficiaries
They are the ones who may enforcce it is the
trustees are in breach
Re Astors (human beneficiary)- good understanding between nations
Re Endacott - anamolus
exceptions not to be extended
Monuments, Masses, Animals
BELOW
Masses
Re Hetherington - public benefit
Bourne v Keen- private
Morice v Bishop of Durham [1804] - beneficiary principle
Uncertainty of objects
May be that a purpose is expressed which is simply too vague to be capable of judicial contol
Morice v Bishop of Durham [1804]
Re Astor [1952]
Contravening perpetuity rule
Means that one is not permitted to tie up
capital for a period of longer than that
permitted by law
Period permitted by law is essentially a human life in being plus 21 years
Position unchanged by the Perpetuities and Accumulations Act 2009
e.g. if you have a trust to build something - can be spent
immediately BUT a trust to maintain is not possible?
Unless limited to perpetuity rule
Re Hooper "so long as trustee can legally
do so" VALID (family graves)
Exceptions
The court has recognised certain exceptions - where the court have allowed the trustees to carry out if they
are willing to do so
This is why they are trusts of
impefect obligation - no one to
enforce them
Monuments
A trust to maintain all tombs in a graveyard is charitable - an individual tomb is private
Couts will allow a tomb to be maintained
as a purpose providing the trustees are
prepared to and it doesnt break the
perpetuity rule
Musset v Bingle [1876] erection and
maintenance
Re Endacott [1960] to myself - uncertainty
Brown v Burdett (blocking
windows - Capricious)
Capricious - Shaws will trust - Alphabet
McCraig v Glasgow Uni -artistic towers (capriicious)
Animal cases
A trust to look after animals generally is charitable but a trust
to look after a specific animal is private
But a trust to look after a specific animal
will be allowed to exist providing it does
not offend the perpetuity rule
Re Dean [1889]- 50 years -
perpet not addressed
Re Kelly - Life in
being must be
human
Re Howard [1908]
Re Haines [1952]
Re Thompson [1934] Fox hunting
Unincorporated associations
Unincorporated
association = a
group of people
who contract
together to further a
specific purpose
e.g. a club or a
poltical purpose
Typically, people might
leave property to an UA
and might even specify the
purpose for which the
property is to be applied
If the testator specifies a purpose then one
possibility is precatory words (no effect) and
say simply a gift
Re Clarke [1901]
Trusts for purpose of UA recognised
Re Drummond [1914]
BUT then later said they were
not allowed since offended
beneficiary principle
Leahy v A-G for New South Wales [1959] - nuns- failed for purpose as closed order no public benefit
Different approaches
Re Denley [1969] - sports field for employees. appeared
to fail under beneficiary principle BUT not so abstract
to not involve people who could enforce
Only true pupose trust?
If purpose tust directly or indiectly benefits a class of ascertainable
individuals then, provided it does not offend the perpetuity period...
Applied in Re Lipinski [1976]]
Re Reacher [1972]-
Neville Estates v Madden - Severance possible
depending on nature of property
below
Conservative Central Office v Burrell [1982]- not unicorportate Association
as lacked key characteristics- no rules and no mutla rights re contract
Re Lipinskis - Hull Judeans - was is a trust for building or individuals - HELD not charitable in
favour of association as was trust indectly for human beneficiaries (re Denleys) and could
be outright gift re rules (Re Reacher) and can transfer to themselves (re Turkington
4 ways to gift to Unicorportated association - 1. Outright gift to be held as joint tenants or tenants in
common 2. Trust for associations purpose 3. Thrust for members and future members 4. outright gift to
members subject to their contractual obligations
not anomalous as members are
human beneficiaries
Re Grants WT - Failed- Labour party- not
own rules - merely a direct contribution to funds
Re Turkington - gift for present member of club - were trustee
and beneficiaries could invest capital in themselves
1. 2 or more people 2.
mutual understanding
arising from contract. 3.
Body of rules 4. Body can
be joined at will