Beneficiary principle

From Lawiki - The law notes repository
Jump to navigation Jump to search
Lawiki for and by law students - find us on Facebook if you want to help us edit this Law Wiki.

Not professional advice - LAWIKI cannot guarantee the validity of any information

The principle that, for a trust to be valid, there must be some person or persons with standing to enforce the trust in the courts. The beneficiary principle is often invoked to explain why English law does not, on the whole, allow the creation of a private purpose trust.

A trust of imperfect obligation is one that is expressed in such a way that it imposes an obligation on the trustee to carry out a purpose, but which can also be construed as a trust to benefit one or more individuals. Such a trust is not an exception to the beneficiary principle.

However, trusts that are valid under the principle of Re Denley (1969) are exceptions to the beneficiary principle. The courts enforce such trusts because there are indirect beneficiaries who possess a sufficient interest to have standing to enforce the trust.

See also certainty of objects.

Trust Law