purpose trusts

What is a valid private trust normally created for?

Individuals

When can a purpose still be valid in a private trust?

If it shows motive only

Which case shows a purpose may only describe motive?

Re Andrew’s Trust

What happened after the education purpose in Re Andrew’s Trust?

Beneficiaries kept money

Why are charitable purpose trusts valid?

Public benefit

Why are non-charitable purpose trusts usually invalid?

No beneficiaries

Main legal objection to non-charitable purpose trusts?

No enforcement

Why does lack of beneficiaries matter?

No one can sue trustee

Name the principle requiring beneficiaries

Beneficiary principle

Which case established the beneficiary principle?

Morice v Bishop of Durham

Morice rule (short)?

Someone must enforce trust

Which case confirmed correlative enforcement rights?

Re Astor's Settlement Trusts

Why did Re Astor fail (enforcement)?

No beneficiary

Second reason Re Astor failed?

Uncertainty

Common drafting problem in non-charitable trusts?

Vague wording

Why did Morice fail for certainty?

Too vague

Example of vague wording in Morice?

Benevolence objects

Irish case interpreting s49 Charities Act?

Daly v Murphy

Three core problems of non-charitable purpose trusts (1)?

No beneficiaries

Three core problems of non-charitable purpose trusts (2)?

Uncertainty

Three core problems of non-charitable purpose trusts (3)?

Undue duration

Why are long trusts problematic?

Public policy

Public policy goal of trust duration rules?

Free property transfer

What must courts check before enforcing purpose trusts?

Property alienability

How do courts sometimes save duration problems?

Flexible interpretation

Which case shows duration distinction?

Mussett v Bingle

which gift was valid in musset?

Monument erection

Mussett invalid gift?

Monument maintenance

Why was monument erection valid?

Limited time assumed

Why was maintenance void?

Perpetual

Law Reform Commission view on duration rule?

No reform

First exceptional valid purpose trust category?

Tombs

Second exceptional category?

Animals

Third exceptional category?

Associations

When can tomb trusts be valid?

If certain

Second requirement for tomb trust validity?

Limited duration

Why was monument trust upheld in Mussett?

Limited duration

Duration rule for tomb maintenance?

Limited only

Statutory support for tomb gifts?

s50 Charities Act 1961

Maximum charitable tomb income?

£60 yearly

Maximum charitable tomb capital?

£1000

When are animal trusts charitable?

General welfare

Are specific animal trusts charitable?

No

Why can specific animal trusts still be valid?

Exception

Animal trust case example?

Re Dean

Re Dean duration?

50 years

Re Dean subject?

Horses and hounds

Re Dean duration limit principle?

Not too long

Re Dean criticism?

Too long period

Court justification in Re Dean?

Animals die sooner

Irish animal trust case?

Re Kelly

Re Kelly duration?

21 years

Re Kelly result after 21 years?

Void

Keane view on indefinite animal trusts?

Invalid

Keane view on limited animal trusts?

Valid

Act abolishing perpetuity rule?

Land and Conveyancing Law Reform Act 2009

Section abolishing perpetuity rule?

s16

Was undue duration abolished?

No

Safe duration guideline?

21 years

Why can charitable trusts last forever?

Public benefit

Doctrine allowing charity modification?

Cy-près

Why are corporate gifts valid?

Legal personality

Problem with unincorporated associations?

No legal personality

Second association problem?

Duration rule

Case validating association gift?

Cocks v Manners

How was gift treated in Cocks?

Gift to superior

Why was Cocks valid?

Not inalienable

Common judicial solution for associations?

Gift to members

Why does this avoid duration problems?

Can dissolve

Association funds theory?

Contract holding theory

Case applying contract holding theory?

Re Lipinski

Lipinski gift purpose?

Building works

How was Lipinski gift treated?

Member gift

Warning against expanding exceptions?

Re Endacott

Endacott trust purpose?

Useful memorial

Why did Endacott fail?

Too uncertain

Second reason Endacott failed?

No exception

Endacott principle?

Do not extend exceptions

General position in Ireland and England on non-charitable trusts?

invalid

Suggested reform to beneficiary principle?

Appoint enforcer

Who proposed enforcer reform?

Hayton

Why does beneficiary principle exist?

Trust duties enforceable

Who holds enforcement rights?

Beneficiaries

Modern Equity view on capricious trusts?

Rare

Modern Equity reform argument?

Validate useful trusts