Beneficiary Principle & Rules Against Perpetuities Flashcards
Definition of beneficiary principle
You need identifiable human beneficiaries who can enforce the trust
Authority for beneficiary principle
Morice v Bishop of Durham
Re Dean
Care/maintenance of animals is an unusual exception to beneficiary principle
Re Hooper
Care/maintenance of graves/monuments is an unusual exception of beneficiary principle
Re Astor’s Settlement Trusts
Purpose trusts normally violate the beneficiary principle due to lack of ascertainable beneficiaries
Exception to Re Astor’s
An exception will be made where purpose trusts have ascertainable beneficiaries, and are directly for the tangible benefit of individuals
s.2(1) Charities Act 2011
Provides that a charitable purpose is a purpose which fails within s.3(1)
s.4(2) Charities Act 2011
No presumption of benefit - it must be proved where not obvious. Any benefit must outweigh detriment
A charitable association must meet these criteria to form a valid trust
Charitable purpose
Sufficient public benefit
Exclusively charitable
Re Scarisbrick
Trusts for relief of poverty are charitable even if the benefit is limited to a small class of objects
Independent Schools Council
Schools whose sole object was the education of children whose families could afford to pay the fees would not be charitable
McGovern
A political purpose is not charitable, however
If the non-charitable purpose is merely incidental to the central charitable purpose of the trust, this is acceptable
Burrell
A non-charitable unincorporated association is a group bound together for a common purpose, not being a business purpose
Morice
General rule is that unincorporated associations have no legal personality and so cannot hold property in the name of the association
Re Recher’s Will Trusts
Property can be given to the members of a NCUA as an outright gift to meet beneficiary principle
