chapter  4
9 Pages

DISCRETIONARY TRUSTS AND PROTECTIVE TRUSTS

Administrative unworkability Re Manisty’s Settlement (1973) A power will not be uncertain merely because the pool of objects is wide but it may be capricious if there is no motive why a particular group has been selected by the donor R v District Auditor No 3 Audit District of West Yorkshire Metropolitan County Council (1986) A discretionary trust may fail for administrative unworkability if the class is too large because unlike a power the court may have to step in to administer the trust

Key Facts A benefi ciary had an interest in a trust on attaining her majority. She was immature and irresponsible and the trustees sought an order allowing them to vary the terms so that the trust became a protected life interest. The court held that although this was not strictly within the court’s powers, because it was not obviously for her benefi t in its own right, an order would be made postponing the vesting of the capital until a specifi ed age and holding the property on protective trusts.