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KembaraXtra - Legal Terms - Unenforceable Trust
1. Introduction
An unenforceable trust is a trust that may be recognised as valid but cannot be directly enforced by a particular beneficiary because of a legal or procedural limitation.
2. Trust Relationships
A trust generally involves trustees holding property for beneficiaries or permitted purposes.
3. Beneficiary Rights
Beneficiaries ordinarily possess equitable rights enabling them to enforce the proper administration of the trust.
4. Formal Requirements
Certain declarations of trust must comply with statutory formalities.
5. Trusts of Land
Under section 53(1)(b) of the Law of Property Act 1925, a declaration of trust respecting land must be manifested and proved by signed writing.
6. Evidential Consequences
A failure to satisfy the evidential requirement may prevent direct enforcement of an otherwise valid express declaration of trust.
7. Resulting and Constructive Trusts
Section 53(2) preserves the operation of resulting, implied, and constructive trusts.
8. Purpose Trusts
Certain purpose trusts raise separate questions concerning the beneficiary principle and enforceability.
9. Legal Importance
The concept illustrates the distinction between the existence of a trust and the ability to establish and enforce its obligations through legal proceedings.
