What is the beneficiary principle UK?

The beneficiary principle is a policy of English trusts law, and trusts in Commonwealth jurisdictions, that trusts which do not have charitable objects, as under the UK Charities Act 2006 sections 2 and 3, and also do not make the trust property available for the benefit of defined people (i.e. beneficiaries), are void …

Do we need the beneficiary principle?

General rule- a trust generally needs human beneficiaries unless it’s a Charitable Trust or a trust for purposes.

What are the exceptions to the beneficiary principle?

The principle that, for a trust to be valid, there must be a human beneficiary capable of enforcing the trust. Exceptions to the beneficiary principle are charitable trusts and a limited number of purpose trusts.

Why was the beneficiary principle adopted?

In Morice v Bishop of Durham [1804] EWHC Ch J80 the Court of Appeal held that non-charitable purposes were void for want of objects. In this case the rationale behind the beneficiary principle was explained. The court stated that without certain objects, the trustees are not subjected to any obligations.

What are the facts about the beneficiary principle?

The beneficiary principle Facts: Bishop of Durham created a trust and the trust deed said the trust was for objects that the trustee should approve in their own absolute discretion Sir WilliamGrant- there can’t be a trust over which the court can’t exercise control as an uncontrollable disposition is ownership not a trust.

Are there any exceptions to the beneficiary principle?

The principle that, for a trust to be valid, there must be a human beneficiary capable of enforcing the trust. Exceptions to the beneficiary principle are charitable trusts and a limited number of purpose trusts. From: beneficiary principle in A Dictionary of Law »

How are income beneficiaries and principal of a trust different?

Many times, the people who will receive the income of the Trust are different from the people who will receive the principal of the Trust. For example, a Trust may require that all income be distributed to a surviving spouse, but none of the principal.

What does the beneficiary principle demand in a trust?

⇒ The beneficiary principle holds that a trust can be valid only if it has a beneficiary So, generally “there must be someone in whose favour the court can decree performance” (Grant MR in Morice v Bishop of Durham) i) What is a “beneficiary” (and so what does the beneficiary principle demand)?