Purpose Trusts

Question 1

What is the beneficiary principle?

Answer 1

Every trust must have a definite object. there must be somebody in whose favour the court can decree performance.

Only 2 exceptions:
1) charitable purpose trusts
2) non- charitable purpose trusts

Question 2

What are the characteristics of a charitable purpose trust?

Answer 2

1) Charitable purpose
2) public benefit
3) wholly and exclusively charitable

Certainty: Charitable intent
Failure of purpose: Cy-pres (can be applied for an alternative charitable purpose)
Perpetuality: Statutory
Enforceable: Charity Commission

Question 3

What are the conditions of a non-charity purpose trust?

Answer 3

1) Endacott exceptions
2) closed class
3) narrowly construed

Certainty: Purpose must be certain
Failure of purpose: resulting trust
Perpetuity: Common Law
Unenforceable: imperfect obligation