Objects of a discretionary trust

Hello everyone

Clients of mine (a married couple with no children) wish to leave their residuary estate to charities but leaving the list of charities to benefit at the Trustees discretion subject to a letter of wishes which they will keep updated. So we have opted for the route of a discretionary trust with letter of wishes.

What I would like to know is whether it is OK to describe the objects of the trust in the following way in the trust document (i.e. the will):

“The Beneficiaries” shall mean any Charity or Charities whom my Trustees (being at least two in number) may by deed appoint under Clause 7.3 AND I REQUEST (without creating any binding trust or obligation) that my Trustees give effect to any written expression of wishes left by me relating to the Charities to be so appointed

I understand that for a trust to be effective there must be certainty of object and I wonder whether there is sufficient certainty here?

Many thanks in advance for you assistance.

Deborah Wise

Hi Deborah,

I’d say the objects are too wide. If the clause stated, “any chaity registered with the chairty commision”: “at date of my death … etc”. + subject to any LOW …

Is or is not test. Etc

Richard Bishop
PFEP

Many thanks Richard - what do you mean by LOW?

Deborah Wise

Hi

Letter of wishes.

Richard Bishop
PFEP

In the case of gifts to charities, the rule as to uncertainty of objects doesn’t apply. Hence, gifts to charities can never fail for uncertainty [eg Re White (1893)]. There is no need to specify the charities who are to benefit.

Malcolm Finney

Of course !!! thank you.

Deborah Wise