Key points

• a trust cannot be enforced unless there is an ascertainable beneficiary;

• a trust for a purpose may fail because either the objects are uncertain or it infringes the perpetuity rule;

• a purpose trust may be saved if it comes within one of the anomalous exceptions which includes trusts for specific animals and trusts for the building of monuments;

• a purpose trust may be saved if there are hidden beneficiaries under the principle in Re Denley’s Trust Deed;

• a purpose trust may be saved as a gift to an unincorporated association for the members of the association; and

• a purpose trust may be saved if the purpose of the trust is charitable.

The beneficiary principle

One of the key rules in the creation of a valid trust is that a trust will only be valid if it has ascertainable beneficiaries. The reason for this is straightforward. The beneficial interest lies with the beneficiaries and it is only they who have the capacity to enforce the trust. Without beneficiaries the trust would have no one to enforce the trust and ensure that the trustees carry out their duties. Some examples of a private purpose trust are set out in the following sections.