Equity and Trusts - Object and Purpose Trusts

Question 1

Define power of appointment

Answer 1

A person has power to deal with property in a particular way but is under no obligation to exercise this authority

Question 2

What is the certainty of object test for fixed trusts?

Answer 2

Complete list test

Question 3

What are the requirements for the complete list test?

Answer 3

1- Comprehensive list of each and every beneficiary
2- Conceptual certainty
3- Evidential certainty

Question 4

For the complete list test you need a comprehensive list of each and every beneficiary

Answer 4

IRC v Broadway Cottages Trust

Question 5

What is the certainty of object test for discretionary trusts?

Answer 5

Given postulant test

Question 6

What is the given postulant test?

Answer 6

It is possible to say whether any given postulant is or is not a member of the class of objects (McPhail v Daulton)

Question 7

It is possible to say whether any given postulant is or is not a member of the class of objects

Answer 7

(McPhail v Daulton)

Question 8

Which case set out guidance for the given postulant test?

Answer 8

Re Baden’s Deed Trust

Question 9

Conceptual certainty is essential in the description of objects but it is unclear whether ‘don’t knows’ would mean failure of the given postulant test

Answer 9

Re Baden’s Deed Trust

Question 10

If there are don’t knows, trust will fail

Answer 10

Stamp

Question 11

Don’t knows will not necessarily mean failure of the trust. The burden is on the claimant to prove he is within the class of objects

Answer 11

Sachs

Question 12

If there is a substantial number of people who can say they are within the class the trust will pass the test

Answer 12

Megaw

Question 13

If the numbers of potential objects within a class is too large it may result in the failure of the trust due to administrative unworkability

Answer 13

West Yorkshire Metropolitan CC

Question 14

If the purpose of a trust is capricious (irrational) it may fail

Answer 14

Re Manisty’s Settlement

Question 15

The test for powers of appointment is the given postulant test

Answer 15

Re Gestner’s Settlement

Question 16

You need identifiable human beneficiaries who can enforce the trust to satisfy the beneficiary principle

Answer 16

Morice v Bishop of Durham

Question 17

Care/ Maintenance of specific animals

Answer 17

Re Dean

Question 18

Care/ Maintenance of Graves/ Monuments

Answer 18

Re Hooper

Question 19

Purpose trusts usually fail due to a lack of identifiable human beneficiary to enforce the trust

Answer 19

Re Astor’s Settlement Trust

Question 20

What criteria are needed for Denley Trusts?

Answer 20

1- The purpose trust has ascertainable beneficiaries
2- It is directly for the tangible benefit of individuals
3- It does not offend the rule against inalienability

Question 21

What criteria are needed for charitable trusts?

Answer 21

1- Charitable Purpose under s3(1) Charities Act 2011
2- Sufficient public benefit
3- Exclusively charitable

Question 22

For public benefit to be sufficient, the numbers cant be negligible (cant be a class within a class)

Answer 22

IRC v Baddeley

Question 23

Trusts for the relief of poverty have sufficient public benefit even if they only benefit a small class of objects

Answer 23

Re Scarisbrick

Question 24

People benefiting cannot be connected by a personal nexus (e.g. all employees of the same company/ family members)

Answer 24

Oppenheim v Tobacco Securities Trust (employees)
Re Compton (family)

Question 25

Private schools cannot be charitable unless they help the less well off

Answer 25

Independent Schools Council v Charity Commission for England and Wales

Question 26

General rule: political purpose is not charitable

Answer 26

Amnesty case

Question 27

Define non-charitable unincorporated association

Answer 27

1- Group bound together for a common purpose

2- not being a business purpose

Question 28

NCUAs do not have legal personality so cannot hold property in their names. There is therefore no identifiable human beneficiary to enforce the trust

Answer 28

Morice v Bishop of Durham

Question 29

How does Re Reacher work?

Answer 29

1- Trust seen as outright gift to members
2- As an accretion to the associations funds
3- To be used in accordance with the association’s rules

Question 30

What is the proviso to Re Reacher? (+ Authority)

Answer 30

Rules of the association must allow the members to dissolve it and share the funds between them for the gift to be valid (Re Grant)

Question 31

If the legacy to a non-charitable unincorporated association is specified as a purpose trust, how should it be dealt with?

Answer 31

Re Lipinski:
1- Under Re Reacher; or
2- Under Denley

Question 32

The rule against inalienability

Answer 32

Re Hooper