Trust Objects Flashcards
What were the facts in Merton v Nuffield?
Gym charged high fees (£71–80/mo), though gym was under a charitable organisation; council challenged its charitable status for business rate relief under public benefit rules.
What principle did the UKSC affirm in Merton v Nuffield?
A charitable purpose need not benefit everyone.
It’s enough to benefit a sufficient section of the public.
Wealthy people can still form part of a “public benefit” group.
What does the Charity Commission say about the public benefit test in relation to Nuffield?
Purpose must be beneficial.
Any detriment must not outweigh the benefit.
What were the accepted exceptions to the beneficiary principle in Re Endacott?
Trusts for care of specific animals
Upkeep of graves or monuments
Private masses
Fox hunting (now obsolete)
What were the facts in Re Denley?
A trust for maintaining a sports ground primarily for employees of a company.
What was held in Re Denley?
Although framed as a purpose, the trust benefited identifiable individuals.
It was enforceable by the employees.
Did not offend the beneficiary principle.
What is David Hayton’s view on the purpose of trusts?
Trusts must be obligation-focused: enforceable duties owed to beneficiaries — not just expressions of moral intention.
What does Matthew Harding say about charity law?
Charity law must adapt to modern social values but should retain its unique legal identity rooted in public good.
What is Nicholas McBride’s contribution to the beneficiary principle?
Emphasises that the core feature of a trust is that it benefits persons who can enforce it — hence, purpose trusts without enforcement violate this principle.
