7. Non-Charitable Purpose Trusts

Abstract

This chapter examines the concept of the non-charitable purpose trust. It explains that non-charitable purpose trusts are generally considered void by virtue of failing to comply with the beneficiary principle. It describes exceptional conditions under which non-charitable purpose trusts are considered valid, such as trusts of an imperfect obligation, and discusses mechanisms for the implementation of non-charitable purposes. This chapter also considers the peculiar problems arising where property is transferred for the benefit of unincorporated associations and how Equity has provided solutions for property-holding by such associations and why the nature of property-holding for unincorporated associations has proved to be significant where the association is dissolved.