Certainty of Objects, Beneficiary Principle, Rules Against Perpetuity

Question 1

Fixed Trust

Answer 1

T’s have no discretion as to how the trust property is distributed amongst B’s

Question 2

Discretionary Trust

Answer 2

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)

Question 3

Power of Appointment

Answer 3

T’s have authority to deal with property in a particular way - Under no obligation to actually exercise this authority

Question 4

Fixed Trust Test

Answer 4

Complete List Test - IRC v BROADWAY COTTAGES - Need conceptual / evidential certainty

Question 5

Fixed Trust - ‘Urgent Suppliers’ = Unclear

Answer 5

OT COMPUTERS v FIRST NATIONAL TRICITY FINANCE

Question 6

Discretionary Trust Test

Answer 6

Given Postulant Test - McPHAIL v DOULTON (guidance in RE BADEN)

Question 7

Failed Discretionary Trust - Administrative Workability

Answer 7

WEST YORKSHIRE MET CC - size/class too big

Question 8

Failed Discretionary Trust - Capriciousness

Answer 8

RE MANISTY’S SETTLEMENT - Act contrary to sensible expectation of the settlor

Question 9

Powers of Appointment Test

Answer 9

Given Postulant Test - RE GESTETNER / RE GULBENKIAN’S SETTLEMENT

Question 10

Beneficiary Principle

Answer 10

MORICE v BISHOP OF DURHAM - Need identifiable human beneficiaries who can enforce the trust

Question 11

Beneficiary Principle Exceptions

(1) Care / maintenance of animals
(2) Care / maintenance of graves / monuments

Answer 11

(1) RE DEAN

(2) RE HOOPER

Question 12

Beneficiary Principle - Purpose Trust

Answer 12

RE DEANLEY - Must have ascertainable beneficiaries and are directly for the tangible benefit of individuals

Question 13

Beneficiary Principle - Charitable Exception - s.2(1) Charities Act 2011

Answer 13

Association must have a charitable purpose that falls within s.3(1)

Question 14

Beneficiary Principle - Charitable Exception - s.4 Charities Act 2011

Answer 14

Association must have sufficient public benefit

Question 15

Beneficiary Principle - Charitable Exception - Public Benefit - Numbers cant be negligible / cant be within a class / territorial restriction

Answer 15

IRC v BRADDELEY

Question 16

Beneficiary Principle - Charitable Exception - Public Benefit - Those benefiting cannot be connected by a Personal Nexus (1) Employment (2) Family

Answer 16

(1) OPPENHEIM

(2) COMPTON

Question 17

Beneficiary Principle - Charitable Exception - Public Benefit - A trust which excludes the poor from a benefit (education) cannot be a charity

Answer 17

INDEPENDANT SCHOOLS COUNCIL v CHARITY COMMISSION OF ENGLAND AND WALES

Question 18

Beneficiary Principle - Charitable Exception - Exclusively Charitable - Political purpose is not charitable

Answer 18

AMNESTY Case

Question 19

Beneficiary Principle - Charitable Exception - Exclusively Charitable - Exception - Non-charitable purose is merely incidental to the central charitable purpose of the trust

Answer 19

McGOVERN

Question 20

Beneficiary Principle - Non-Charitable Unincorporated Association - Define

Answer 20

(1) Group bound together for a common purpose

2) Not being a business purpose (having mutual duties and obligations) - CONSERVATIVE AND UNIONIST CENTRAL OFFICE

Question 21

Beneficiary Principle - Non-Charitable Unincorporated Association - General Principle

Answer 21

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

Question 22

Beneficiary Principle - Non-Charitable Unincorporated Association - Treat as outright gift

Answer 22

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

Question 23

Beneficiary Principle - Non-Charitable Unincorporated Association - Treat as a Trust for a purpose

Answer 23

RE LIPINSKI / RE DENLEY - If a purpose is specified that benefits the members

Question 24

Rule against Inalienability - Define

Answer 24

(1) Allow Trustees to spend all the trust capital on the given purpose
(2) Limit the Charitable purpose to 21 years - RE HOOPER