The ‘beneficiary principle’ is a requirement that there must be an ascertainable beneficiary or beneficiaries for a trust to be valid. The policy unde

The$‘beneficiary$principle’$is$a$requirement$that$there$must$be$an$ascertainable$

beneficiary$or$beneficiaries$for$a$trust$to$be$valid.$The$policy$underlying$this$

principle,$and$arguably$the$whole$of$the$law$of$trusts$is$that$there$must$be$a$

beneficiary$in$whose$favour$the$trust$can$be$exercised$by$the$court$and$that$there$

must$be$beneficiaries$with$proprietary$rights$in$the$trust$fund.$

$

Critically$discuss$this$statement$$

$

‘Slaughter)of)the)innocents’1,"a"phrase"once"coined"for"the"beneficiary"principle,!is!

indicative)of)the)judicial)witch"hunt2!for$invalid$provisions$that$was!once%a%common%

feature'in'trusts'law.'Despite!the$principle$becoming!seemingly%flexible%over%time,!

debate&continues!as#to#its#application#and#the#dubious#exceptions#that#have#emerged#

as!a"result."The$plethora)of)interpretations)used)in)attempt)to)keep)within)the)

beneficiary*principle’s#strict&confines&resulted(in!uneven%case%law%history%based%on%

indistinguishable-facts3,"ridding!trusts%law!of#necessary!legal%certainty.!Although(the(

beneficiary&principle!undoubtedly*remains*an*underlying*component,"this"essay"argues"

there%is%an#alternative#approach#presuming#trust%validity,"regardless(of(whether(there(

are!ascertainable+beneficiaries!to#enforce#it.#Furthermore,*clear&demand&for$non"

charitable#purpose#trusts#in#such#a#consumer"driven'society'means'that$such$a$rigid$

principle(is(inappropriate,)advocating)the)need)for)robust)reform.%

%



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1 th
%Hudson%Equity'and'Trusts%(7 %Edition,%Routledge%2013)%171%
2 th
%Hudson%Equity'and'Trusts%(7 %Edition,%Routledge%2013)%171%
3
%Re%Denley's%Trust%Deed%[1969]%1%Ch%373%cf.%with%Leahy%v%Attorney"General%for%New%South%Wales%
[1959]%HCA%20%