Non-Charitable Purpose Trusts Flashcards
Why does Jaconelli say Re Astor’s Settlement Trusts was incorrect?
What legislation and case does J draw upon?
What context is J referring to?
The judgement said a trust was void even if the duration was confined by perpetuity period if it was an NCPT.
Jaconelli says it cannot be void, as the term has no legal significance.
But it can be voidable - that it stands until such time as it is terminated. Draws on s173 LOPA in which certain scenarios are ‘voidable’ at instance of purchaser.
If void, then property would continue to be vested with trustee, and trust would only be dissolved on transfer - potential, suggests J, for fraudulent transfer.
Also says that trustees are under no duty to invalidate the trust per Alsop Wilikinson v Neary.
J is referring to the possible loss of a trust for schools if held to be NCPTs.
How does Jaconelli suggest the cy-près doctrine can be modified to encompass NCPTs?
J suggests s13 (5) in Charities Act 1993 could be amended. Currently there is an obligation on trustees to ensure cy-près is applied when difficulties arise where there is a ‘trust for charitable purposes.’ J suggests this could include ‘a trust for a purpose that was ORIGINALLY [ti] charitable.’
