Re Grant's Will Trusts

A gift to a local branch of a political party failed, because its members could not control its property, which was subject to the rules of the national party.

Citation
[1980] 1 WLR 360
Court
Chancery Division
Year
1980
Subject
Equity and Trusts
Topic
Purpose trusts and unincorporated associations

Facts

A testator left his estate to the Labour Party Property Committee for the benefit of the Chertsey Headquarters of the Chertsey and Walton Constituency Labour Party. The local party was subject to the rules of the national Labour Party, which could change its rules and control how its property was used. The question was whether the gift was valid.

Legal principle

Vinelott J held that the gift was void. The gift could not take effect as a gift to the members of the local party, subject to their contractual rights under the rules, because the members did not control the property: the national party could direct how it was used, and the local members could not decide to divide it among themselves. The gift was therefore a non charitable purpose trust, which failed.

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