Unit 3- The Beneficiary Principle
Lecture 1- Introduction
A trust has to have human beneficiaries so they can enforce the trust (Trust “enforces”)
Only trust for purpose on charitable purposes
Enforceability
Morice v Bishop of Durham (1804)
“Every other (ie.non-charitable) trust must have a definite object. There must be somebody
in whose favour the court can decree performance”
Enforceability and Control
Re Astor’s Settlement Trust (1952)
2nd viscount Astor had a trust in his will
As there was no human beneficiary there couldn’t be control or enforceability
“it is difficult to visualise the growth of equitable obligations which nobody can enforce… no
court and no department of state can control, or in the case of maladministration reform”
Certainty
“objects of benevolence of and liberality” and “integrity of the newspapers” are vague
terms
Capriciousness
Brown v Burdett (1882)
Old lady wanted all the rooms in her house blocked for 20 years except 4
This was void for being capricious
Perpetuity
Means forever, prevents money being tied up and not circulating the economy
The rule against the remoteness of vesting:
All trusts created after April 2010 have a cut off time of 125 years. The fund must
vest in someone otherwise it will be void
Stated periods or “wait and see” when it comes to the 125 years mark
The rule against inalienability (of trust capital) (also known as the rule against perpetual
trusts):
Alienating something means disposing something
Void if the capital is not alienated (spent) for 21 years
, Lecture 2- The Beneficiary Principle 2
Trust or No Trust
Valid Trust Void
Testator left £20,000 to North Tawton Devon Huge sum of
Parish Council for the purpose of “providing money for an
some useful memorial to myself” unspecified
Re Endacott [1960] Ch 232 memorial
A trust for “the maintenance of good No trust, integrity
understanding, sympathy and co-operation of newspapers is
between nations, the preservation of the not a person
independence and integrity of the
newspapers; the protection of newspapers
from being absorbed by combines of being
tied by finance or otherwise to special …
views”
Re Astor’s S. T
A trust (for 21 years) for research into the Trust for purpose
creation of a new alphabet (with the ultimate therefore nobody
objective of developing a new language which can enforce it
all the peoples of the world could speak and
so increase understanding and peaceable
relations between them) and the translation
of his play “Androcles and The Lion” into that
alphabet
Re Shaw [1957] 1 WLR 729
A trust to provide a cup for the best Nobody could
yachtsman in a yachting competition enforce this
Re Nottage [1895] 2 Ch 517
BUT NOTE – AS WITH ALL GOOD RULES THERE This was upheld
MAY BE EXCEPTIONS! because he was nice
to horse
A trust for the upkeep of the testator’s
favourite horse
Pettingall v Pettingall (1842) 11 LJ Ch 176
A trust to provide £750 per year for 50 years “Awww” factor
to feed testator’s horses and hounds again
Re Dean (1889) 41 Ch D 552
An annuity to be paid for the maintenance of Animal was allowed
a parrot during the lives of two named this trust even
persons, if the parrot should live that long though not a person
Re Howard [1908] The Times 30 October
A trust for the promotion and furthering of fox
Lecture 1- Introduction
A trust has to have human beneficiaries so they can enforce the trust (Trust “enforces”)
Only trust for purpose on charitable purposes
Enforceability
Morice v Bishop of Durham (1804)
“Every other (ie.non-charitable) trust must have a definite object. There must be somebody
in whose favour the court can decree performance”
Enforceability and Control
Re Astor’s Settlement Trust (1952)
2nd viscount Astor had a trust in his will
As there was no human beneficiary there couldn’t be control or enforceability
“it is difficult to visualise the growth of equitable obligations which nobody can enforce… no
court and no department of state can control, or in the case of maladministration reform”
Certainty
“objects of benevolence of and liberality” and “integrity of the newspapers” are vague
terms
Capriciousness
Brown v Burdett (1882)
Old lady wanted all the rooms in her house blocked for 20 years except 4
This was void for being capricious
Perpetuity
Means forever, prevents money being tied up and not circulating the economy
The rule against the remoteness of vesting:
All trusts created after April 2010 have a cut off time of 125 years. The fund must
vest in someone otherwise it will be void
Stated periods or “wait and see” when it comes to the 125 years mark
The rule against inalienability (of trust capital) (also known as the rule against perpetual
trusts):
Alienating something means disposing something
Void if the capital is not alienated (spent) for 21 years
, Lecture 2- The Beneficiary Principle 2
Trust or No Trust
Valid Trust Void
Testator left £20,000 to North Tawton Devon Huge sum of
Parish Council for the purpose of “providing money for an
some useful memorial to myself” unspecified
Re Endacott [1960] Ch 232 memorial
A trust for “the maintenance of good No trust, integrity
understanding, sympathy and co-operation of newspapers is
between nations, the preservation of the not a person
independence and integrity of the
newspapers; the protection of newspapers
from being absorbed by combines of being
tied by finance or otherwise to special …
views”
Re Astor’s S. T
A trust (for 21 years) for research into the Trust for purpose
creation of a new alphabet (with the ultimate therefore nobody
objective of developing a new language which can enforce it
all the peoples of the world could speak and
so increase understanding and peaceable
relations between them) and the translation
of his play “Androcles and The Lion” into that
alphabet
Re Shaw [1957] 1 WLR 729
A trust to provide a cup for the best Nobody could
yachtsman in a yachting competition enforce this
Re Nottage [1895] 2 Ch 517
BUT NOTE – AS WITH ALL GOOD RULES THERE This was upheld
MAY BE EXCEPTIONS! because he was nice
to horse
A trust for the upkeep of the testator’s
favourite horse
Pettingall v Pettingall (1842) 11 LJ Ch 176
A trust to provide £750 per year for 50 years “Awww” factor
to feed testator’s horses and hounds again
Re Dean (1889) 41 Ch D 552
An annuity to be paid for the maintenance of Animal was allowed
a parrot during the lives of two named this trust even
persons, if the parrot should live that long though not a person
Re Howard [1908] The Times 30 October
A trust for the promotion and furthering of fox
