Certainty of Objects, Beneficiary Principle, Rules Against Perpetuity Flashcards
Fixed Trust
T’s have no discretion as to how the trust property is distributed amongst B’s
Discretionary Trust
T’s under a duty to select B’s from a class and decide how much they are to receive (METTOY PENSION TRUSTEES v EVANS)
Power of Appointment
T’s have authority to deal with property in a particular way - Under no obligation to actually exercise this authority
Fixed Trust Test
Complete List Test - IRC v BROADWAY COTTAGES - Need conceptual / evidential certainty
Fixed Trust - ‘Urgent Suppliers’ = Unclear
OT COMPUTERS v FIRST NATIONAL TRICITY FINANCE
Discretionary Trust Test
Given Postulant Test - McPHAIL v DOULTON (guidance in RE BADEN)
Failed Discretionary Trust - Administrative Workability
WEST YORKSHIRE MET CC - size/class too big
Failed Discretionary Trust - Capriciousness
RE MANISTY’S SETTLEMENT - Act contrary to sensible expectation of the settlor
Powers of Appointment Test
Given Postulant Test - RE GESTETNER / RE GULBENKIAN’S SETTLEMENT
Beneficiary Principle
MORICE v BISHOP OF DURHAM - Need identifiable human beneficiaries who can enforce the trust
Beneficiary Principle Exceptions
(1) Care / maintenance of animals
(2) Care / maintenance of graves / monuments
(1) RE DEAN
(2) RE HOOPER
Beneficiary Principle - Purpose Trust
RE DEANLEY - Must have ascertainable beneficiaries and are directly for the tangible benefit of individuals
Beneficiary Principle - Charitable Exception - s.2(1) Charities Act 2011
Association must have a charitable purpose that falls within s.3(1)
Beneficiary Principle - Charitable Exception - s.4 Charities Act 2011
Association must have sufficient public benefit
Beneficiary Principle - Charitable Exception - Public Benefit - Numbers cant be negligible / cant be within a class / territorial restriction
IRC v BRADDELEY
Beneficiary Principle - Charitable Exception - Public Benefit - Those benefiting cannot be connected by a Personal Nexus (1) Employment (2) Family
(1) OPPENHEIM
(2) COMPTON
Beneficiary Principle - Charitable Exception - Public Benefit - A trust which excludes the poor from a benefit (education) cannot be a charity
INDEPENDANT SCHOOLS COUNCIL v CHARITY COMMISSION OF ENGLAND AND WALES
Beneficiary Principle - Charitable Exception - Exclusively Charitable - Political purpose is not charitable
AMNESTY Case
Beneficiary Principle - Charitable Exception - Exclusively Charitable - Exception - Non-charitable purose is merely incidental to the central charitable purpose of the trust
McGOVERN
Beneficiary Principle - Non-Charitable Unincorporated Association - Define
(1) Group bound together for a common purpose
2) Not being a business purpose (having mutual duties and obligations) - CONSERVATIVE AND UNIONIST CENTRAL OFFICE
Beneficiary Principle - Non-Charitable Unincorporated Association - General Principle
Have no legal personality and so cannot hold trust property in the name of the association - Have no identifiable human beneficiaries who can enforce the trust - MORICE v BISHOP OF DURHAM
Beneficiary Principle - Non-Charitable Unincorporated Association - Treat as outright gift
RE RECHER - Gift to the Members (doesn’t offend the beneficiary principle), as an accretion to the association’s funds to be dealt with according to the rules of the association - Assets must be freely available
Beneficiary Principle - Non-Charitable Unincorporated Association - Treat as a Trust for a purpose
RE LIPINSKI / RE DENLEY - If a purpose is specified that benefits the members
Rule against Inalienability - Define
(1) Allow Trustees to spend all the trust capital on the given purpose
(2) Limit the Charitable purpose to 21 years - RE HOOPER
