The Lord Chancellor remarked that if a trustee on a refusal to renew could have the lease himself, few leases would be renewed in favour of beneficiaries. The judge distinguished the precedent set by Re London Wine Co Ltd A general power of appointment is incapable of being a trust power, for the courts are incapable of exercising such power. Copyright 2013. It was argued that the trust was invalid on two grounds: there was conceptual uncertainty and the words are not clear enough for a rabbi either. appoint, the deed of appointment had not, as the settlement itself required, designated the In short, a non-exhaustive discretionary trust of the income is a trust for distribution of the income coupled with a power to accumulate or otherwise dispose of the undistributed income. Appeal from - Re Pauling's Settlement Trusts (No.1) CA 29-May-1963. 0000006061 00000 n The material feature is that the clause is only activated if the trustees fail to distribute the property in favour of the relatives of the settlor. Re Montagu's Settlement Trusts - Wikipedia of appointment in the settlement, so that the nieces and nephews living at the date of _ ,v Mrs Oughtred obtained the ownership in equity by virtue of the agreement, and this view has been supported by later cases (see Re Hay's Settlement Trusts [1982]). This is part of the "orthodox" or "strict" rule, along with Re Goldcorp. Equity and Trusts (7th ed, Routledge, 2013), Hudson, A. A power inserted in the trust instrument which exceeds the statutory period is valid for 21 years and void in respect of the excess period. Accordingly, the trustees may not release their discretion and if they refuse to exercise their discretion the court will intervene. The trustees are required to distribute the income each year as it arises, but have a discretion regarding the persons who may actually benefit. With regard to charitable trusts, the Law Commissions recommendation for a modification of the accumulation period was enacted in s 14 of the Perpetuities and Accumulations Act 2009. "Certainty of objects" means that it must be clear who the beneficiaries, or objects, are. Dishonesty in this situation is not restrained to deceit. Become Premium to read the whole document. However, in Re Hay's Settlement Trust, Megarry V-C held that, exercised properly, this sort of agreement could be administratively workable, and would not be immediately void. Re Hay's Settlement Trusts [1982] 1 WLR 202 by Lawprof Team Key point Affirmed Re Manisty - a power cannot be void for administrative unworkability Facts In a trust deed trustees were directed to hold trust funds for any persons (with the exception of the settlor, her husband and Ts) or purposes they appoint with 21 years of settlement The test for fixed trusts is that the trustees must be able to give a complete list of the beneficiaries, as laid down in IRC v Broadway Cottages. This has two problems; firstly, the class could be too broad to be administratively workable, and second, the courts are unable to judge if the power has been exercised appropriately. In my opinion the cases show that you must find in the will an indication that the testatrix did intend the class or some of the class to take intended in fact that the power should be regarded in the nature of a trust.. OT Computers Ltd v First National Tricity Finance Ltd [2007] WTLR 165, Re Gulbenkians Settlement Trusts [1970] AC 508, Hardcastle, I. M. Administrative unworkability a reassessment of an abiding problem in Conveyancer and Property Lawyer (1990) Jan/Feb, 24-33, Hudson, A. As a duty, a trustee is to take care as an ordinary prudent man would take if he cared for taking an investment for the benefit of other people for whom he felt morally bound to provide (Re Whiteley (1886) 33 Ch D 347 at 355).
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