Private Law Theory

ABSTRACT
Orthodox trust law invalidates non-charitable purpose trusts on the basis of the beneficiary principle. However, in the last two decades, various offshore trust jurisdictions have begun to provide for non-charitable purpose trusts via legislation and Hayton has even suggested that they may be permitted by simple drafting through the provision of an enforcer even in onshore trust jurisdictions without special legislation. This paper sets out the reasons why Hayton is wrong and explains the true basis for the objection to the non-charitable purpose trust. It also explains why charitable trusts are a hybrid of public and private law.

Low, Kelvin FK, Non-Charitable Purpose Trusts: The Missing Right to Forego Enforcement (April 4, 2017). Cambridge University Press, Trusts and Modern Wealth Management, 486-509, 2018.

First posted 2020-01-04 08:10:21