Non Charitable Purpose Trust

Question 0

Purpose Trust:

Answer 0

Always firstly considered a charitable purpose, if doesn’t meet the 13 criteria of the Charities Act 2011 then normally rendered void.

Question 1

Morice v Bishop of Durham (1804)

Re Astor’s Settlement

Answer 1

Need for identifiable beneficiaries.

Question 2

Re Shaw's Wills Trust 
Re Endacott (1960)

Answer 2

Re Shaw’s Wills Trust: Creation of a 40 letter alphabet was held NOT CHARITABLE, no identifiable beneficiaries so trust failed.

Re Endacott: Gift to parish council to provide some useful memorial to him was held NOT CHARITABLE as no identifiable beneficaires the trust failed.

Question 3

Exceptions to Void rule

i) Direct or indirect benefit to individuals.
ii) Testamentary trusts of imperfect obligation.

Answer 3

Despite the general principle of invalidity there are exceptional categories of case in which non-charitable purpose trusts have been recognised as valid.

Question 4

Re Denley’s Trust Deed

Answer 4

Trustees held land on trust as sports ground for use and enjoyment of employees from 21 years from death of last named individual and for other people selected by trustees.
VALID - DIRECTLY/INDIRECTLY BENEFITTED IDENTIFIABLE INDIVIDUALS.

-Goff J held that trust would have been invalid if the purpose had been abstract.

Question 5

Testamentary trusts of imperfect obligation

Re Endacott

Answer 5

Re Endacott identified 4 anomalous exceptions that are valid despite beneficiary principle of Morice v Bishop of Durham

Question 6

Re Endacott: 4 categories

Answer 6

i) Trusts for PARTICULAR ANIMALS.
ii) Trusts for ERECTION AND MAINTENANCE OF GRAVES AND MONUMENTS.
iii) Trusts SAYING OF PRIVATE MASSES.
iv) Trusts for MISCELLANEOUS CASES.

Question 7

Re Dean

Answer 7

Trust for a particular animal.

Trust is valid so long as complies with perpetuity period of 21 years.

Question 8

Pirbright v Sawley

Re Hooper

Answer 8

Trust for raw erection and maintenance of graves and monuments.
Valid so long as it satisfies perpetuity period - after 21 years surplus money given to whoever entitled to residue of estate.

Question 9

Re Endacott

Answer 9

Saying of private masses.

Valid so long as perpetuity is not infringed.

Question 10

Re Thompson

Answer 10

Trusts for miscellaneous.
Testator bequeathed legacy to promote and further fox hunting.

Valid on the basis of willingness of trustee to carry out purpose.
Imperfect obligation trust.