The Rule in Saunders v Vautier

Introduction

The **rule in Saunders v Vautier** (1841) is one of the most important practical principles in the law of trusts. It allows a beneficiary who is **of full age**, **of sound mind** and **absolutely entitled** to the trust property to bring the trust to an end and call for the property to be transferred to them — **even where this defeats the settlor's intentions** (such as a direction to postpone payment until a later age). This chapter explains the rule, its extension to **groups of beneficiaries** and to **discretionary trusts**, the **four essential conditions** for invoking it, and how it is examined in SQE1-style single best answer questions.

Assessment focus

For SQE1 FLK1 (Trusts) you must be able to **state the rule in Saunders v Vautier** and **apply it to a client scenario**. Questions typically present a will or settlement directing that property be held until a beneficiary reaches a specified age, then ask whether one or more beneficiaries can compel early termination. You must recognise that the rule requires beneficiaries to be **sui juris** (of full age and full mental capacity) and **between them absolutely entitled**, and that where there is more than one beneficiary their consent must be **unanimous**. A common examiner's trap is a **discretionary trust** scenario: the rule still applies provided **all** objects who could benefit are ascertained, sui juris and act together. This is a closed-book assessment — learn the conditions from memory.

Study tips

1) Learn the full citation: **Saunders v Vautier (1841) 4 Beav 115; Cr & Ph 240**. 2) Memorise the **four conditions**: (i) **sui juris** (18+ and full mental capacity); (ii) **absolutely / vested entitlement** (no contingency); (iii) where there is more than one beneficiary, **unanimous consent**; (iv) **together** entitled to the entire beneficial interest. 3) Remember the rule **overrides the settlor's wishes** — a direction to delay payment to a later age (e.g. 25) does not bind an adult, absolutely-entitled beneficiary. 4) The rule **extends to discretionary trusts** (Re Smith [1928] Ch 915) provided all possible objects are sui juris and act unanimously. 5) Age of majority in England and Wales is **18** (Family Law Reform Act 1969); capacity is assessed under the **Mental Capacity Act 2005**.