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Examples
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Re Shaw, Public Trustee v Day [1957] 1 WLR 729
- to develop a 40 letter alphabet
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Re Endacott (Deceased) [1960] Ch 232
- 'providing some useful memorial to myself'
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Re Astor's Settlement Trusts [1952] Ch 534
- 'maintenance of good understanding between nations and the preservation of the independence and integrity of newspapers'
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Beneficiary Principle
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Exceptions
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Particular animals
- Re Dean (1889) 41 ChD 552
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Maintenance of graves or monuments
- Pirbright v Salway [1896] WN 86
- Described as anomolous in Re Astor and Re Endacott
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Trusts framed as trusts for people
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Re Denley's Trust Deed [1969] 1 Ch 373
- Land was to be used as a sports ground, primarily for benefit of employees
- Benefit to individuals is sufficiently tangible to give them standing to enforce the trust
- Unclear whether a factual benefit will suffice, or an equitable interest is necessary
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Must also satisfy...
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Rule against inalienability
- 21 years
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Certainty of objects
- Purpose
- Must be sufficiently certain
- Beneficiaries
- Likely to be given postulant test
- Must be reasonable number
- R v District Auditor, ex parte West Yorks Met. County Council [1985] 26 RVR 24
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Certainty of Objects
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The purpose must be sufficiently certain to enable the trustees to apply the funds
- Eg Re Astor
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Rule Against Inalienability
- Duration limited to 21 years
- Or for 'as long as the law allows'
- Must make it clear that capital can be spent on purpose
- OR make the trust charitable
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Useless or Capricious Purposes
- Brown v Burdett (1882) 21 ChD 667
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Quistclose Trusts
- Interpreted in Twinsectra
- Was the primary trust a purpose trust?
- Lender passes legal title to borrower, but retains beneficial interest under a resulting trust
- The lender is therefore the beneficiary of the resulting trust