Trusts FLK 2 ’ Charitable and Non-Charitable Purpose Trusts
questions with 100% complete solutions A+ rated
1. What is a pur-
A trust to carry out a purpose or advance a cause.
pose trust?
2. Validity rules for
Must in general satisfy the same validity rules ’
the declaration
valid dec- laration, three certainties, beneficiary
of trust
principle and rule of perpetuities.
Certainty of intention ’ must be clear that the
person mak- ing the declaration intended to
create a trust.
Certainty of subject matter ’ it must be clear what
property is being held on trust.
Certainty of objects ’ in the case of a purpose
trust, the object is the purpose.
It must therefore be clear what purpose the
trustees should be trying to achieve with the trust
property ’ does not apply to charitable trusts ’
provided the purpose is charitable, it does not
matter how vaguely it is expressed, it will fall to
the Charity Commission to work out with the
trustees exactly what to do with the trust
property.
Beneficiary principle ’ trusts must usually benefit
individu- als ’ creates a problem for purpose
trusts.
Perpetuities ’ property should not be locked away
in trusts for too long.
Different time-periods are relevant when
3. Beneficiary prin- considering pur- pose trusts.
ciple
Formalities ’ if the trust property contains land,
the decla- ration of trust must comply with s.53
(1)(b) LPA 1925.
1/
11
, Trusts FLK 2 ’ Charitable and Non-Charitable Purpose Trusts
questions with 100% complete solutions A+ rated
As a general rule
purpose trusts are
void because of
the beneficiary
principle ’ no
individual who can
go to court to
enforce the trust.
2/
11
questions with 100% complete solutions A+ rated
1. What is a pur-
A trust to carry out a purpose or advance a cause.
pose trust?
2. Validity rules for
Must in general satisfy the same validity rules ’
the declaration
valid dec- laration, three certainties, beneficiary
of trust
principle and rule of perpetuities.
Certainty of intention ’ must be clear that the
person mak- ing the declaration intended to
create a trust.
Certainty of subject matter ’ it must be clear what
property is being held on trust.
Certainty of objects ’ in the case of a purpose
trust, the object is the purpose.
It must therefore be clear what purpose the
trustees should be trying to achieve with the trust
property ’ does not apply to charitable trusts ’
provided the purpose is charitable, it does not
matter how vaguely it is expressed, it will fall to
the Charity Commission to work out with the
trustees exactly what to do with the trust
property.
Beneficiary principle ’ trusts must usually benefit
individu- als ’ creates a problem for purpose
trusts.
Perpetuities ’ property should not be locked away
in trusts for too long.
Different time-periods are relevant when
3. Beneficiary prin- considering pur- pose trusts.
ciple
Formalities ’ if the trust property contains land,
the decla- ration of trust must comply with s.53
(1)(b) LPA 1925.
1/
11
, Trusts FLK 2 ’ Charitable and Non-Charitable Purpose Trusts
questions with 100% complete solutions A+ rated
As a general rule
purpose trusts are
void because of
the beneficiary
principle ’ no
individual who can
go to court to
enforce the trust.
2/
11
