The Beneficiary Principle

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  • Created by: Hope
  • Created on: 19-05-16 15:10
What is the beneficiary principle?
To make a trust, there must be a human beneficiary capable of enforcing it
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What case does this come from?
Morice v Bishop of Durham
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Which type of trusts are not valid thanks to this rule?
Private Purpose trusts
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What was the rule in Leahy v AG for NSW?
A trust may not be for an abstract purpose, unless its a charity
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What are some case examples of a trust failing because of lack of human beneficiary?
Re Astor's ST (good understanding between nations), Re Shaw (alphabet), Re Endacott (memorial)
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What are the four objections to allowing purpose trusts according to Jill Poole?
Enforceability, Uncertainty, Delegation of testamentary powers, perpetuity
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What is the maximum time for a trust to continue?
125 years
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What are the three reasons for the perpetuity rule?
to prevent gifts from vesting at too remote a time in the future, to prevent capital from being tied up indefinitely, to prevent income being accumulated for too long a period
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What are the exceptions to the rule prohibiting public purpose trusts?
Tombs and monuments, Trusts for animals and The saying of private masses.
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What are case examples for tombs?
Musset v Bingle (memorial for 1st wife's husband), Re Hooper (family gravestones)
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How do these affect perpetuity?
Can only maintain them for 125 years
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Why are trusts for animals allowed? Example?
Because they'll die before perpetuity runs out, Re Dean
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What is the limitation on masses? Example?
if mass is in private ok, in public, not ok. Bourne v Keane
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How do courts interpret these rules? Authority?
Very strictly, Re Endacott
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What are some case examples of the courts finding a human beneficiary in a purpose trust?
Re Bowes (planting trees), Re Denley DT (sports ground)
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Card 2

Front

What case does this come from?

Back

Morice v Bishop of Durham

Card 3

Front

Which type of trusts are not valid thanks to this rule?

Back

Preview of the front of card 3

Card 4

Front

What was the rule in Leahy v AG for NSW?

Back

Preview of the front of card 4

Card 5

Front

What are some case examples of a trust failing because of lack of human beneficiary?

Back

Preview of the front of card 5
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