Purpose Trusts

Question 1

What does Morice v Bishop of Durham demonstrate?

Answer 1

The beneficiary principle that generally non-charitable purpose trusts are void, as there is no one to enforce them and the courts are unable to control their execution

Question 2

What three conditions must be met for a non-charitable purpose trust to potentially be valid?

Answer 2

1. Must fall into a category previously upheld by the courts (Re Endacott)
2. Must fall within the perpetuity period (21 yrs unless a life in being is stated)
3. There is someone willing to execute the trust

Question 3

What are the 3 Endacott categories?

Answer 3

1. Erection/maintenance of tombs/monuments
2. For the saying of masses
3. For the maintenance of particular animals/pets

Question 4

Which Endacott category does Re Hooper fall under?

Answer 4

Erection/maintenance of tombs, as it specified that the tomb should be maintained for ‘as long as they can legally do so’

Question 5

What was the decision in Musset v Bingle?

Answer 5

That the trust to erect a monument was valid, but a trust for its upkeep was void as it was not limited in perpetuity

Question 6

Which Endacott category does Bourne v Keane fall into?

Answer 6

For saying masses: such trusts are valid as long as they’re limited in perpetuity

Question 7

What does the case of Re Haines show?

Answer 7

That Endacott trusts for the maintenance of a pet may not need to be limited in perpetuity, if it’s clear that the animal will not live longer than 21 years

Question 8

How long is the perpetuity period?

Answer 8

Either specified lives in being + 21 years, 21 years, or a fixed period no longer than 125 years that the testator can state

Question 9

What does the case of Re Astor’s Settlement Trust demonstrate?

Answer 9

That trusts with no ascertainable beneficiaries are likely to be unenforceable

Question 10

What is an unincorporated association?

Answer 10

People bound together for a common purpose by rules (which may/not be charitable) that is not a legal entity, so is not subject to legal rights or obligations

Question 11

What was shown by Re Denley’s Trust?

Answer 11

That a purpose trust for recreation/sports primarily for the employees of a company may be valid of the class is ascertainable and limited in perpetuity