Beneficiary Principle

Business, Legal & Accounting Glossary

Definition: Beneficiary Principle

Beneficiary Principle

Full Definition of Beneficiary Principle

The principle that, for a trust to be valid, there must be some person or persons with standing to enforce the trust in the courts. The beneficiary principle is often invoked to explain why English law does not, on the whole, allow the creation of a private purpose trust.

A trust of imperfect obligation is one that is expressed in such a way that it imposes an obligation on the trustee to carry out a purpose, but which can also be construed as a trust to benefit one or more individuals. Such a trust is not an exception to the beneficiary principle.

However, trusts that are valid under the principle of Re Denley (1969) are exceptions to the beneficiary principle. The courts enforce such trusts because there are indirect beneficiaries who possess a sufficient interest to have standing to enforce the trust.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Beneficiary Principle. Payroll & Accounting Heaven Ltd.
February 02, 2023
Chicago Manual of Style (CMS):
Beneficiary Principle. Payroll & Accounting Heaven Ltd. (accessed: February 02, 2023).
American Psychological Association (APA):
Beneficiary Principle. Retrieved February 02, 2023
, from website:

Definition Sources

Definitions for Beneficiary Principle are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th April, 2020 | 0 Views.