Unit 2.2 Flashcards
Two tests for certainty of objects?
Given postulant test
Complete list test
Test for certainty of objects in fixed trusts?
Complete list test (IRC Broadway)
Must be able to draw up a list of all the beneficiaries or the trust fails
- Conceptual certainty: define objects clearly
- Evidential certainty: have to be able to identify each member of the class
What happened in OT Computers?
‘Urgent supplies’ did not satisfy the complete list test
Shows application of ‘complete list test’ to commercial trusts
Test for certainty of objects in discretionary trusts?
Given postulant test
Must be able to say for certainty whether or not someone fits into the class of objects or not
Sometimes known as the ‘is or is not’ test
What happened in Re Baden’s Deed Trust?
Speculation as to whether ‘don’t knows’ invalidated a discretionary trust certainty of objects
- Question as to whether or not ‘relatives’ was too vague
- Stamps in minority view that people should fit into a yes or no box or else trust would be invalid
- Sachs and Megaw- ‘don’t knows’ dont invalidate as long as there are enough in the class of objects
Can a trust still fail even if it meets the certainty of objects tests?
Yes. Can do so because of:
- Administrative unworkability (Morice v Bishop of Durham)
- Capriciousness (Re Mainstry’s settlement- ‘benefiting residents of greater London’ capricious because any terms of power negative any sensible intention on part of settlor)
What is the beneficiary principle?
Morice v Bishop of Durham- trusts are valid if they have human beneficiaries who can go to court to enforce them
What are the exceptions to the beneficiary principle?
Legacies
- To look after pets (Re Dean)
- To look after grave stones (Re Hooper)
Charitable trusts
Non-charitable unincorporated associations
Purpose trusts
How do Charitable trusts circumvent the beneficiary principle?
Enforced by Attorney General
