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    Hello everyone!
    I have a question about purpose trusts. Does anybody know what are the policy reasons for limiting the development of purpose trusts? Or where I could find out more about this particular issue?
    Thank you for helping!
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    (Original post by Abc_91)
    Hello everyone!
    I have a question about purpose trusts. Does anybody know what are the policy reasons for limiting the development of purpose trusts? Or where I could find out more about this particular issue?
    Thank you for helping!
    Read the relevant chapter in Gardner's introduction to the law of trusts.

    In essence, the policy behind the beneficiary principle (prohibiting purpose trusts) is that it is in the public interest for funds to be directly for the benefit of identifiable people, so that people can take advantage of them, rather than abstract purposes.
    So we apparently don't want money tied up so that it can only be used on some abstract purpose (such as for inventing a new language). Lots of money would be tied up for silly reasons.

    Of course, the rule is demonstrated most powerfully by its exceptions, which demonstrate that where there is a good reason for money to be tied up for an abstract purpose, the law will allow it.

    You then have to make your own mind up about whether these exceptions undermine the rule.
 
 
 
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