Must Distinguish Between Fixed Trusts, Discretionary Trusts And Powers Of Trust Case Study

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Register to read the introduction… Fixed trusts: two types –
The complete list test for equal division e.g. if leave property to be divided equally to residents of Uxbridge = need to find out every single person in class = need conceptual + evidential certainty. Would fail unlike if leave property to children. Need to know every person in trust otherwise do not know how much each person should get as equally divided! Established in Re Gulbenkian's Settlement (1970). To be valid at time of making trust must be able to draw up complete list of beneficiaries – must have conceptual + evidential certainty
OT Computers v First National Tricity Finance (2003): OT knew in financial difficulty + knew people that sent money might not get goods > set up trusts for customer accounts + urgent supplier accounts as knew might go bust. Issue = when people go bust liquidator needs to know whether valid trust of money in account, if was give money to beneficiaries if not money used to pay creditors + beneficiaries only get small fraction. Held customer account a valid trust as knew beneficiaries were customers but urgent supplies was void as did not know who beneficiaries
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e.g. “all the residents of Greater London” with no criteria would probably be unworkable!!!!
Some academic views as to why may be administratively unworkable:
Trustees cannot exercise discretion rationally?
Some classes are Simply too big to be appropriate for a discretionary trust. Is size so important? M&D over 40,000 classes that was considered workable. At what point does it become to big?
Disproportionately costly to carry out e.g. “survey the class” (to investigate the class) to figure out who will be appropriate recipient of payment through adverts etc.
Evidential problems
R v District Auditor ex p Westminster Yorks Metropolitan County Council (1986): WCC due to be abolished by AOP & CC had some money left as about to expire s created a trust with remaining funds £400,000 for benefit for any or all for county of West Yorkshire. Made criteria for trustee to take into account in distribution e.g. to assist minority groups. Held to be administratively unworkable one of reasons being because size of class (2.5 million people = class to big). Q is why was 40,000 allowed in M&D why is 2.5 million too

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