Trust Law: The Beneficiary Principle

A legal principle that states that all trusts must have identifiable human beneficiaries who can enforce the trust's terms.

A trust that is created for a specific purpose, such as charitable work, rather than for specific individuals.

The ability of a beneficiary or trustee to enforce the terms of a trust and ensure it's properly administered.

A legal case that established the requirement for a trust to have a definite beneficiary who can enforce its terms.

A legal case illustrating the importance of identifiable beneficiaries for the purposes of trust enforcement.

A legal principle stating that trusts cannot be created for vague or uncertain purposes.

A legal doctrine that prevents trusts from being created for excessively whimsical or unreasonable purposes.

A legal rule that limits the duration of trusts, preventing them from lasting indefinitely.

A principle that states that a gift to an unincorporated association is void if the association's rules prevent the members from distributing the funds to themselves upon dissolution.

A theory where the members of an unincorporated association are treated as holding the association's assets on trust for each other.

A court case where the Labour Party's rules prevented the distribution of assets upon dissolution, leading to the application of the rule against inalienability.

A situation where an association has a rule preventing the distribution of assets upon dissolution.

A case where a local trade union branch was allowed to separate from the national organization and keep its funds.

Refers to a group of people bound together for a common purpose. The association is not a separate legal entity.

This case determined that an unincorporated association should have rules making it clear how the assets are controlled and how membership works.

A case about whether a single remaining member of an unincorporated association still satisfies the definition.

An alternative to the traditional trust model, where a person acts as an agent to manage funds for a specific purpose.

A situation where a trust is created for a specific purpose, and if the purpose fails, the assets revert back to the settlor.

A case that established the concept of a 2-tier trust, where the funds were intended for dividends but upon failure, reverted back to the lender.

A situation where a trust and a contract can coexist. This can be tricky to determine because it's not always clear if there was a binding contract.

The general principle stating that a gift to an unincorporated association is invalid if the rules prevent members from having full control over the assets. For example, if the rules prevent the distribution of assets at dissolution or if the members lack power over the assets.

A trust established when money is lent for a specific purpose, and if the purpose fails, the lender is entitled to reclaim the funds.

In this case, a company intended to pay third-party creditors but became insolvent before the funds were used. The court found that the money was held in trust for the lender because the company was not free to use it as it wished.

This case explored whether a Quistclose trust could exist even when the funds are deposited into a general bank account rather than a separate account. The court ruled that a separate account isn't necessary, as long as the intended purpose is clear.

In this case, customers paid deposits in advance, which were placed in a separate account. The court held that they were beneficiaries of a trust, not just creditors.

This case involved a company that collected money for Christmas hampers, but the plan was impossible to fulfill when the company went insolvent. The court ruled that no Quistclose trust existed because there was no clear intention to hold the money for the customers.

A key theme in Quistclose cases is that the lender must retain control over the funds if the purpose fails. The lender needs to ensure they can reclaim the money if it isn't used for its intended purpose.

In this case, Lord Millet addressed the issue of whether the Quistclose trust is a single trust or a dual trust (benefitting both the lender and the intended beneficiary). He argued for a single trust where the lender remains the beneficiary until the purpose is fulfilled.

Quistclose trusts are often argued to be purpose, express, resulting, or even constructive trusts, due to their characteristics. However, they can be classified as a separate type of trust with unique features.

A Quistclose trust does not need to be registered. Its existence is determined when a company becomes insolvent and the funds are not used for their designated purpose.

A debate exists regarding the fairness of Quistclose trusts, where the lender receives all their money back, potentially leaving less for unsecured creditors. The arguments concern balancing the interests of lenders and unsecured creditors in a complex situation.

A trust where the purpose is for the benefit of an animal, like a pet or a horse. The trust can be valid, even though animals can't enforce their rights.

A trust established for the upkeep of a grave or monument - considered valid.

A trust for a specific purpose, like building a monument for a deceased person. These trusts have the potential for being void, as they lack a clear beneficiary to enforce adherence to the purpose.

A trust that is void because there is no identifiable beneficiary or someone who can enforce the trust's purpose. The purpose might be too broad, vague, or indefinite.

A trust that is valid, even though there is no identifiable beneficiary. The court can find beneficiaries indirectly, for example, those who benefit from the purpose of the trust (like employees benefiting from a recreation ground).

An organization that is established to accomplish a specific purpose, such as charitable relief, public education, or social reform. They are not allowed to make profits for their members.

A form of ownership where the owner has complete control over the asset, with the right to use, transfer, or exclude others from it. The owner is entitled to all benefits and burdens associated with the asset.

A legal remedy used to enforce a trust where the trustee has failed to perform their duties. The court can step in and appoint a new trustee or take other measures to ensure the trust is managed properly.

The party appointed to manage and administer a trust, responsible for safeguarding the trust property and carrying out the terms of the trust.

The party designated to receive the benefits of the trust, enjoying the rights and benefits derived from the trust property.

A legal document that sets up a trust, outlining its terms, provisions, beneficiaries, and the intended purpose of the trust.

The property held within a trust that is managed and distributed according to the trust's terms. It can be real estate, money, investments, or other assets.