ABSTRACT

An intended express trust for non-charitable purposes, as distinct from a trust to benefit persons, is void. Instead, a resulting trust will be created for the settlor or his estate. The justification for this rule is the absence of a person (a beneficiary) who has locus standi to enforce the trust. There are a number of exceptions to this rule. These are:

(a) trusts for the maintenance of specific animals;

(b) trusts for the erection and maintenance of monuments;

(c) the gift may prima facie appear to benefit purposes but, on construction, the court may decide that the gift benefits persons (see Re Denley’s Trust Deed [1969] 1 Ch 673 at pp 346-47 below).

Gifts to unincorporated associations provide special difficulties in this context. Transfers to such bodies may be construed as creating gifts on trust for the purposes of the association and may be invalidated under the lack of beneficiary principle. In addition, such gifts may infringe the rule against perpetuities. However, there are a number of ways in which such gifts may be treated as valid. These are: