Charitable and Honorary Trusts

Question 1

Distinctive rules that apply to Charitable Trusts?

Answer 1

must (1) have indefinite beneficiaries; (2) may be perpetual; and (3) cy pres doctrine applies

Question 2

Charitable Trust required a charitable purpose, such as:

Answer 2

1. The relief of poverty
2. The advancement of education or religion
3. The promotion of health
4. The accomplishment of government purpose (parks, museums, and playgrounds)

No special language necessary as long as intent is clear.

Question 3

What is the Cy Pres Doctrine?

Answer 3

a charitable purpose selected by the settlor is impracticable, unlawful, impossible to achieve, or wasteful, the court may select an alternative under the doctrine of cy pres, which means “as near as possible” by ascertaining the settlor’s primary purpose.

Question 4

What is a Honorary Purpose Trust?

Answer 4

commonly established for the benefit of pets or for the maintenance of burial places.