Certainty of Objects, Beneficiary Principle, Rules Against Perpetuity Flashcards
(24 cards)
Fixed Trust
T’s have no discretion as to how the trust property is distributed amongst B’s
Discretionary Trust
T’s under a duty to select B’s from a class and decide how much they are to receive (METTOY PENSION TRUSTEES v EVANS)
Power of Appointment
T’s have authority to deal with property in a particular way - Under no obligation to actually exercise this authority
Fixed Trust Test
Complete List Test - IRC v BROADWAY COTTAGES - Need conceptual / evidential certainty
Fixed Trust - ‘Urgent Suppliers’ = Unclear
OT COMPUTERS v FIRST NATIONAL TRICITY FINANCE
Discretionary Trust Test
Given Postulant Test - McPHAIL v DOULTON (guidance in RE BADEN)
Failed Discretionary Trust - Administrative Workability
WEST YORKSHIRE MET CC - size/class too big
Failed Discretionary Trust - Capriciousness
RE MANISTY’S SETTLEMENT - Act contrary to sensible expectation of the settlor
Powers of Appointment Test
Given Postulant Test - RE GESTETNER / RE GULBENKIAN’S SETTLEMENT
Beneficiary Principle
MORICE v BISHOP OF DURHAM - Need identifiable human beneficiaries who can enforce the trust
Beneficiary Principle Exceptions
(1) Care / maintenance of animals
(2) Care / maintenance of graves / monuments
(1) RE DEAN
(2) RE HOOPER
Beneficiary Principle - Purpose Trust
RE DEANLEY - Must have ascertainable beneficiaries and are directly for the tangible benefit of individuals
Beneficiary Principle - Charitable Exception - s.2(1) Charities Act 2011
Association must have a charitable purpose that falls within s.3(1)
Beneficiary Principle - Charitable Exception - s.4 Charities Act 2011
Association must have sufficient public benefit
Beneficiary Principle - Charitable Exception - Public Benefit - Numbers cant be negligible / cant be within a class / territorial restriction
IRC v BRADDELEY
Beneficiary Principle - Charitable Exception - Public Benefit - Those benefiting cannot be connected by a Personal Nexus (1) Employment (2) Family
(1) OPPENHEIM
(2) COMPTON
Beneficiary Principle - Charitable Exception - Public Benefit - A trust which excludes the poor from a benefit (education) cannot be a charity
INDEPENDANT SCHOOLS COUNCIL v CHARITY COMMISSION OF ENGLAND AND WALES
Beneficiary Principle - Charitable Exception - Exclusively Charitable - Political purpose is not charitable
AMNESTY Case
Beneficiary Principle - Charitable Exception - Exclusively Charitable - Exception - Non-charitable purose is merely incidental to the central charitable purpose of the trust
McGOVERN
Beneficiary Principle - Non-Charitable Unincorporated Association - Define
(1) Group bound together for a common purpose
2) Not being a business purpose (having mutual duties and obligations) - CONSERVATIVE AND UNIONIST CENTRAL OFFICE
Beneficiary Principle - Non-Charitable Unincorporated Association - General Principle
Have no legal personality and so cannot hold trust property in the name of the association - Have no identifiable human beneficiaries who can enforce the trust - MORICE v BISHOP OF DURHAM
Beneficiary Principle - Non-Charitable Unincorporated Association - Treat as outright gift
RE RECHER - Gift to the Members (doesn’t offend the beneficiary principle), as an accretion to the association’s funds to be dealt with according to the rules of the association - Assets must be freely available
Beneficiary Principle - Non-Charitable Unincorporated Association - Treat as a Trust for a purpose
RE LIPINSKI / RE DENLEY - If a purpose is specified that benefits the members
Rule against Inalienability - Define
(1) Allow Trustees to spend all the trust capital on the given purpose
(2) Limit the Charitable purpose to 21 years - RE HOOPER
