Purpose (non-ch) trusts

Question 1

what is a purpose trust

Answer 1

the general rule is that trust for a purpose (nit an individual) will fail as it offends the certainty of objects requirement

what do we mean by a purpose - we mean a trust which is made fro a reason or intention/ rather that for a specific person or body corporate.

Question 2

what is the rationale against purpose trusts

Answer 2

the beneficiary principle
the rule against perpetuities

Question 3

The Beneficiary Principle

Answer 3

There are no beneficiaries to enforce a trust

Case law:

Re Astors Settlement - trust to encourage freedom of press- invalid because it breached ben principle

Morice v Bishop of Durham - gifts for such objects of benevolence and liberality which the bishop chooses - invalid

Question 4

The Rule against Perpetuities

Answer 4

Rule that an interest under a trust cant last later than 21 years after death.

Exception where a trust is for the ercetion of monuments or graves - s50 of 1961 act

RE KELLY - 100 pounds for the support of each greyhound purpose of 4 pound per annum was valid

Question 5

The Exceptions to this Rule against Purpose trusts

Answer 5

1. be for a purpose previously upheld by the courts
2. Have someone to execute it
3. Be limited in perpetuity

Question 6

1. Erection/ Maintenance of graves/ monuments

Question 7

2. Trusts for the Maintenance of Animals

Answer 7

RE WEDGEWOOD -
trusts for particular animals are valid as they ‘check mans tendency to cruelty and encourages his ‘better side’

Question 8

Trusts for unincorporated Associations