Private purpose Trusts add to 3 certainites - lec 5 Flashcards
what is the general purpose?
General Rule – Purpose trusts are not allowed in English law:
Morice v Bishop of Durham (1804) 9 Ves 399:
‘Every trust must have a definite object. There must be somebody in who favour the court can decree performance…[‘the beneficiary principle’]…
what about purpose trusts?
Law relating to private prupose trusts- - james 2007 private purpose trust – genral rule enlighs law pt are allowed
moreice case?
someone who can enforce trust – sue & compel tustees to perform terms of trust- now
Exceptions to the Beneficiary Principle?
Now to this ben principle 3 notable exceptions have becomes established in English trust law
what are the 3 exceptions?
(i) Charitable Trusts (see later)
(ii) Re Denley Type Private Purpose Trusts
(iii) Anomalous Exceptional Testamentary Purpose Trusts. - james article
1st in other words?
1st – chartiable trust – where the purpose of trust sif ro122 or more of list excepted charibtable purpose as set out in s.3 of the charities act 2011-
1st example?
for example relief of pov – advance of education, advance of religion- so gove half million trustes to relief poverty amongst single moth living in westmidlands area – the trutes will be vested legal title of that money and they will be under fid equitable duty to apply that money for that purpose- a cpt is a wakling, like all purpose trust theres no equitable title- to money- so sort of half baked trust in that sense- legal title with trustees and under equ obligation a fidicury obl to apply money for purpose in hand as stated , if falls in list of charitable purposes- registered when with carit commison and ctrustess must apply money approp under commission completes trustees carry out investing etc and attorney general – can bring enforcement against charitable trustees- so there is enforce – ut is no eq title to and no ben as such to people benefifitng from that cp the object sof that trust- are nor like objects fixed discretionary trusts – bene with eq title some sort- the objects and charitable trusts are people who purpose single moms in bham
more on 1st example?
So cpt is valdi from of trust – si no eq title- no ben- in this sense half baked trust- but still valid trust and can be enforced by the charity cmmision or attorney genral – so is abig acception to the beneficiary rule- but still valid form of trust. That’s exception no.1. c trist due course
Re Denleys Trust Deed [1969] 1 Ch.373
Charles Denley transferred land to trustees to be maintained and used as a sports field for the employees of a company.
denley in depth?
Charles denly – transferred land he ownerd ro trusees- read as written – for 21 yrs – q wwas was a valid trust estabslihed- couldn’t be chartable trust even though promioting sport athletics is cp –
b with chartable trust also have to show proper cross sectional public benefit- here no public benefit bc the employees were closed group or closed class of people
– section public- closed group of people all working for one employer company so couldn’t be charitable no insufficient public benefit , benefit private class of people- legal title of land were to go trustees and to make available – ath – private group of people
what did goff j say?
Goff J held: Although the trust was expressed as for a purpose it was in fact for the benefit of individuals (employees) because they would benefit directly or indirectly from the carrying out of the purpose, it was therefore outside the mischief of the beneficiary principle.
HE SAID TRUST VALID
why was the trust also valid?
Also the trust was valid because:
(a) there were ‘enforcers’ i.e the employees could take legal action to enforce the trust and hold the trustees to their duties;
valid because in other words?
He said also valid bc he said didn’t much need beneficaires I snse of having eq title. He could have private oruose trust here were there is clear group of people who could be enforcers – need someone who can enforce, don’t necc need eq title, we need enfrcers- someone who has suffienct int potentiallty in form of trust –
other words 2?
if not performed or performed badlt, trustees can be held on account- so here if trustees have free hold title to land not on ladn register but got padlock on gate running trak wont make avail to employee- and one could in theory- potential to issue summons and breac of trust tog et adlcok off and run to – to enforcer terms of trust
prof hayton say?
Prof Hayton: ‘…as a car needs an engine… [to be valid]…a trust needs an enforcer…’
