Charitable and Honorary Trusts

Question 1

Are political parties charitable purposes?

Answer 1

No

Question 2

What are the unique rules regarding a charitable trust?

Answer 2

Charitable trusts must have 1) indefinite beneficiaries; 2) it may be perpetual; and 3) the cy pres doctrine applies.

Question 3

Charitable trusts may be ______________.

Answer 3

perpetual

Question 4

Cy Pres Doctrine —

Answer 4

where the charitable purpose created by a settlor of a trust is impracticable, unlawful, impossible to achieve, or wasteful, the court may select an alternative by ascertaining the settlor’s primary purpose. This only applies to charitable trusts.

Question 5

Honorary Trusts —

Answer 5

a trust established for a non-human beneficiary which places the trustee “on her honor” to carry out the terms of the trust.

Question 6

To can enforce an honorary trust?

Answer 6

Anyone named in the trust or appointed by the court.

Question 7

For an honorary trust, how long does the benefit last?

Answer 7

For the life of the animal beneficiary. The rule against perpetuities does not apply to honorary trusts.

Question 8

Who has standing to enforce a charitable trust?

Answer 8

The State AG on behalf of the public, or the settlor if they are still alive.

Question 9

How it a charitable trust determined to actually be operating for a charitable purpose?

Answer 9

The court must ask how the trust would operate in effect.

Question 10

To what kind of trusts does the doctrine of deviation from trust administrative terms due to changed circumstances?

Answer 10

Private and charitable trusts