LAWS4151

Equity and Trusts I

Week 7 Student Handout

Lecture: Charitable Trusts

Reading:
 Gallagher, Chapter 8

Be cautious if you are reading UK textbooks on this topic as they may be

referring to the UK legislation (eg. UK’s Charities Act 2006 and 2011).

Tutorial: The Beneficiary Principle

Be prepared to answer the following questions and take AN ACTIVE

PART IN THE TUTORIAL.

1. Explain the beneficiary principle with reference to decided cases.

2. Are there any exceptions to the beneficiary principle?
3. What is the relevance of the rule against perpetuities?
4. What happens to private purpose trusts that fall within one of the
accepted categories, do not offend the perpetuities rules, but are
capricious?
5. Explain the decision in Re Denley’s WT [1969] 1 Ch. 373.
6. What are the ways identified by Cross J in Neville Estates v Madden
[1962] Ch. 832 in which an unincorporated association may be construed
as receiving and holding property?

Problem Question
Robert died last month. His will contained the following dispositions:
1. I leave $190,000 to my trustees to be used to build and maintain a
large yellow pyramid as a tribute to the contributions to mankind

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 made by my parents and grandparents. This fund is to be applied for
as long as the law shall allow.
2. I leave $100,000 to my trustees to be applied for the upkeep of my
favourite horse, Dobbin.
3. I leave $30,000 to my trustees to be applied for the upkeep of
Kowloon Zoo’s baby elephant, Nelly.
4. I leave $120,000 to my trustee to be applied for the payment of 10
years rent of a property that will be used by the existing and future
members of the Kasparov Chess Club. After 10 years, any balance
should be paid to Magnus Carlsen.
5. I leave $300,000 to the Manchester United Supporters’ Association to
be used to purchase coaches to take supporters to away games.

The Manchester United Supporters’ Association and the Kasparov Chess

Club are unincorporated associations.

Advise as to the validity of each of the dispositions. If they are not valid
specify what will happen to the subject matter.