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Gifts to Non-Charitable Unincorporated Associations

Q: Explain why NUAs offend the beneficiary principle and what can be done to resolve this?

NUAs have no legal personality (i.e. not a legal person), so have no beneficiaries who can enforce the trust. This offends the beneficiary principle and causes the NUA to fail. To avoid such gifts failing for want of a beneficiary, the courts devised alternative constructions (decide whether a gift could be construed in such a way that would make it valid) . The construction will depend on the wording of the gift .

4 important questions on Gifts to Non-Charitable Unincorporated Associations

What is the definition of unincorporated associations in (CUCO v Burrell)?

Two or more persons are bound together for a common, non-business purpose by identifiable rules regarding rights, duties, funding, and membership.

Explain why NUAs offend the beneficiary principle and what can be done to resolve this?

NUAs have no legal personality (i.e. not a legal person), so have no beneficiaries who can enforce the trust. This offends the beneficiary principle and causes the NUA to fail. To avoid such gifts failing for want of a beneficiary, the courts devised alternative constructions (decide whether a gift could be construed in such a way that would make it valid). The construction will depend on the wording of the gift.

2. Explain why the gift in Re Recher's Will Trusts was valid?

The testator left a share of her residuary estate to the 'London and Provincial Anti-Vivisection Society'. The Society was not charitable because of its political aims. It was held that the legacy was a gift to the members beneficially, not as joint tenants in common and was an accretion to the funds which were subject to the rules of the Society.

Why did the gift in Re Grant's Will Trust fail?

The testator wanted to give his estate to the Chertsey and Walton Constituency Labour Party. His will contained a gift to the committee of the Chertsey and Walton Constituency Labour Party. The gift was void because it was not freely available. The members did not have full control over spending the gift or dissolving the NUA at any time because of external control from the party headquarters.

The question on the page originate from the summary of the following study material:

WS3 Certainty of Objects and the Beneficiary Principle

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