Trust validity and perpetuity rules upheld where beneficiaries were identifiable and interests vested within the permitted period.

Trust deeds created for the prospective wives of the assessee's sons were held valid because the beneficial interests vested within lives in being and did not offend the rule against perpetuity. The beneficiary class was sufficiently certain, as the deeds identified the persons to be benefited by reference to objectively ascertainable future events, namely the marriage of the named sons. A trust may also be created for a person not yet in existence if the statutory conditions are satisfied. The reference to ultimate charitable purposes did not invalidate the arrangements, because the primary beneficial objects were definite and workable. The arrangements were therefore upheld as legally effective.

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Issues: Whether the trust deeds created for the prospective wives of the assessee's sons were invalid for offending the rule against perpetuity, for uncertainty of the beneficiary or object, or for vagueness in the ultimate charitable purpose.

Analysis: The trust deeds created successive beneficial interests within the lifetime of persons living at the date of transfer and therefore did not postpone the vesting of interest beyond the period prohibited by the rule against perpetuity. The description of the beneficiaries was sufficiently certain because the deeds identified the persons to be benefited by reference to objectively ascertainable future events, namely the marriage of the named sons. A trust may validly be created for a person not yet in existence if the statutory conditions are satisfied. The ultimate reference to charitable purposes did not render the trusts invalid in the present case, since the earlier and primary beneficial objects were sufficiently definite and workable.

Conclusion: The trust deeds were valid in law and did not fail for perpetuity, uncertainty of beneficiary, or uncertainty of object.

Final Conclusion: The questions referred were answered against the Revenue and the trust arrangements were upheld as legally effective.

Ratio Decidendi: A trust is valid where its beneficiaries and objects are identified with reasonable certainty and the interests created take effect within the period permitted by the rule against perpetuity, even if the ultimate beneficiary is contingent on future events.

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