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Chapter

Chapter
Private purpose trusts
DOI link for Private purpose trusts
Private purpose trusts book
Private purpose trusts
DOI link for Private purpose trusts
Private purpose trusts book
ABSTRACT
In Chapter 4 we analysed the ‘three certainties’ test and, in particular, the test for certainty of benefi ciaries, and in Chapter 5 we considered the mechanics of creating an express trust. In this chapter, we will highlight one limitation to the creation of an express trust, namely the ‘benefi ciary’ principle (i.e. the legal requirement that a private trust may only be valid if it is designed to benefi t persons who are capable of enforcing the trust). In short, the settlor is required to identify a benefi ciary with the capacity to enforce the trust. Thus, a trust that promotes a private purpose is void because a purpose does not have the capacity to enforce the trust. In addition, unincorporated associations (such as many tennis and golf clubs) promote objects that are stated in their constitutions. The status of such associations will be examined and the diffi culties posed by making gifts to such bodies will be considered. The courts have adopted a number of approaches in dealing with the validity of such gifts.