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  Home > Law > Law glossary > Law glossary

Trust of imperfect obligation

Last modified: Thu Feb 23 16:37:38 2006

A trust which is deemed to be valid, but in which the courts will not compel the trustees to carry out the obligations placed on them (hence the obligations are `imperfect'). Normally a trust that creates an obligation on the trustees beyond the duty to benefit some ascertainable beneficiary will be held invalid (see BeneficiaryPrinciple), unless it is a CharitableTrust. The term `trust of imperfect obligation' is not a precise one, and different authors use it to describe one or both of the following types of trust.

  • A trust that has a defined human beneficiaries, and a supervening purpose. An example is ReOsaba1979, where the trustees were directed to apply the fund for the university education of the settlor's daughter. The court construed this trust as one for the benefit of the daughter, and a supervening purpose of providing education.
  • An anomalous valid PrivatePurposeTrust, as described in ReEndacott1960, such as a trust for the upkeep of a grave.

    The difference between these two categories are that a trust of Osaba has a human beneficiary, while an Endacott trust does not. So the first category probably does not represent a strong exception to the beneficiary principle.

    A trust of the type described in ReDenley1969 would probably not be described as a trust of imperfect obligation because the very reason that the Re Denley trust was upheld was that there were people who could enforce the trust.

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