Powered by Lexis+®

Related Glossary Terms

CASE STUDY

“It really is saving us a huge number of hours over the days, weeks and months. Having more relevant support at hand, not having to draft or review documents them from scratch - it all adds up.”

Southampton FC

Access all documents on Trust in restraint of alienation

Trust in restraint of alienation meaning

What does Trust in restraint of alienation mean?
A trust in restraint of alienation describes a trust provision that seeks to stop a beneficiary with an absolute equitable interest from selling, assigning, mortgaging or bequeathing that interest, from allowing it to pass on intestacy, or from exercising ordinary incidents of ownership such as committing waste. In practice, and as developed by case law rather than statute, any such restraint attached to an absolute gift is repugnant and void. Key features are: an absolute interest is given, followed by a prohibition (for example, “not to sell or charge”, “not to dispose by will”, “shall not pass on intestacy”, or “no waste”). The restriction fails; the absolute interest remains freely alienable. Practical significance: do not pair an absolute gift with anti‑alienation or “spendthrift” wording. To protect assets, use recognised alternatives: a life interest, a determinable or conditional interest, a discretionary trust, or (in England & Wales and Northern Ireland) a statutory protective trust. Trustees may manage and control trust property, but cannot strip core powers from an absolute owner. Jurisdictions: The principle is broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland—absolute prohibitions on alienation or waste are ineffective—though each system offers its own protective structures to achieve similar ends.
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.