LEGAL PRINCIPLE: EQUITY AND TRUSTS – Express Trusts – Trust for Unincorporated Association – Validity of Gift to Trustees
PRINCIPLE STATEMENT
The lower court did not hold that the trustees became absolute owners of the land but that the land became vested in the trustees as recipients in favour of an unincorporated association; it was a valid gift which vested the legal estate in the defendants in trust for the said association of persons; it remains valid even if the only subsisting trustee were one person as the Act permits of one trustee holding land in trust for an unincorporated association of persons.
RATIO DECIDENDI (SOURCE)
"The lower court did not hold that the trustees became absolute owners of the land. That court held that the land became vested in the trustees as recipients of the land in favour of Light of the Christ Praying Band... It was a valid gift which vested the legal estate in the defendants in trust for the said association of persons. It remains valid even if the only subsisting trustees were to be the 1st defendant as the Act permits of one trustee holding land in trust for an incorporated association of persons."
EXPLANATION / SCOPE
Gifts to trustees for unincorporated associations are valid and create trusts. Legal structure: (1) legal title vests in trustees; (2) beneficial ownership rests with the association/members; (3) trustees hold in trust, not as absolute owners. This distinguishes: trustees’ legal estate (holding title) from beneficial ownership (association’s interest). The Land (Perpetual Succession) Act permits: unincorporated associations to own property through trustees, even a single trustee holding for unincorporated association, and pre-incorporation ownership. Validity doesn’t depend on: multiple trustees (one suffices), association’s incorporation (unincorporated associations can hold through trustees), or trustees becoming absolute owners (they’re trustees, not beneficial owners). This serves: enabling religious, social, charitable unincorporated groups to hold property, using trust mechanism to overcome lack of legal personality, and maintaining property ownership for association purposes. The trust continues validly even if: trustees reduce to one, original trustees die/resign (replaced per trust terms), or association remains unincorporated. This flexible framework facilitates property holding by unincorporated associations common in Nigerian society.