Purpose Trusts Flashcards
What is the beneficiary principle?
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
What are the characteristics of a charitable purpose trust?
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
What are the conditions of a non-charity purpose trust?
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