Trusts Law. Non-Charitable Purpose Trusts - Essay Example

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he conventional observation is that non-charitable purpose trusts are void. In “Re Endacott”1, Lord Evershed M.R viewed that “a non-charitable trust under English law cannot be enforceable as it is not having ascertainable or quantifiable beneficiaries…
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Trusts Law. Non-Charitable Purpose Trusts
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Download file to see previous pages Secular Society”2, Lord Parker was of the view that “benefit to individuals should be an essential ingredient of a trust or must be in that category of gifts which the courts identify as charitable.” In “Re Recher's Will Trusts”, Brightman J was of the view that as there is no beneficiary, a non-charitable trust is void. “Just as a rail requires an engine, so a trust requires a recipient”3. In “Astor's Settlement Trusts”, it was held by Roxburgh J that due to lack of a beneficiary, every non-charitable trust is void4 For a pure purpose, a private purpose trust (for instance, a trust to advance a cause) may be established where there will no single beneficiary to enjoy the benefits or for the advantages of an unquantifiable group of people (for instance, a trust to construct a playground for a school). A private, non-charitable purpose trust of the first type mentioned above will always be annulled, since it is not enforceable by anybody. As opposed, a charitable trust is always a purpose trust and hence, enforceable and there will no problem in enforcing the same as the Attorney-General will have locus standi to litigate. 5. Though, there exists a general rule which appears to forbid purpose trusts in the non-charitable background, there are, some scenarios in which non-charitable purpose ? trusts have been endorsed in English law, and these can be detailed as follows: If confined to a perpetuity period, trusts for the prolongation of other non-charitable, religious ceremonies / rites may well be held valid. For instance, a gift for the recital of ceremonies namely Sin Chew (worship of ancestor) so as to disseminate the testator's reminiscence during the perpetuity period was upheld by the Supreme Court of the Straits Settlement in “Khoo Cheng Teow, Re”6.The House of Lords in “Bourne v Kean”e7 which viewed such trusts for the saying of masses as valid and clearly held it to be charitable. This research essay will analyse in detail the validity of such non-charitable trust under English law and will recommend suitable amendments in English Trust laws to give legal sanctity to such non-charitable trust. Analyse Since the gift encourages an essential part of religion, namely, the saying of prayers, a gift for the saying of prayer of masses in public is held to be charitable. Though, saying cannot be established to beneficial to the mankind per se, but are supposed to offer an adequate element of public benefit. The prima facie hypothesis that is made is that prayers mentioned by a settlor in an inter viva or a will instrument are supposed to be said in public as held in “Re Caus”8. In “Re Hetherington”9 , and in this case, a testatrix by her will had bequeathed ? 2,000 for saying of “ masses for the souls of her parents , sisters, husband and herself” It was held that trust was valid as it was for the advancement of religion10. Though, in, it was held by Roxburgh J that due to lack of a beneficiary, every non-charitable trust is void but the English law has conventionally permitted four fundamental varieties of testamentary private purpose trust where it has been held that non-charitable trust even without beneficiaries can be held valid under the following scenarios. • The upholding of specific animals; • The building and preservation of private tombs, graves and monuments; • The conducting other religious ceremony in private or saying of masses and • The encouragement of fox-hunting Purpose trusts emanating in the ...Download file to see next pagesRead More
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