Charitable And Other Purpose Trusts

Question 1

What are charitable and purpose trusts?

Answer 1

They are trusts with no human beneficiaries.

Question 2

What are the aim of a non charitable purpose trusts?

Answer 2

The aim of purpose trusts is to achieve a specificied purpose rather than to benefit a specific person.

Question 3

Do charitable purpose trusts needs to have ascertainable human beneficiaries?

Answer 3

No

Question 4

How long can a charitable purpose trust last?

Answer 4

May last forever

Question 5

3 requiremtns for a charitable purpose trust?

Answer 5

1. The purpose of the trust must be charitable.
2. Must be for public benefit and
3. The purpose must be exclusively charitable.

Question 6

The list of charities which satisfy charitable purposes from the charities act 2011?

Answer 6

1. Prevention or relief of property
2. Advancement of education
3. Advancement of religion
4. Advancement of health or saving lives
5. Advancement of community development or citizenship
6. Arts, heritage or science
7. Amateur sports
8. Environmental protection
9. Animal welfare
10. Reserach - only charitable where there is an intention to spread the completed research

Question 7

What is the test for public benefit?

Answer 7

Must be an identifiable public benefit to the public or to the section of the public.

Question 8

Are policitical purposes charitable?

Answer 8

No

Question 9

When will political purposes be charitable?

Answer 9

If it is incidental to the charitable purpose - eg a campaign to provide shelter to the homeless even if it involves a political campaign.

Question 10

Will a trust fail if a valid charitable trust incidentally benefits private individuals?

Answer 10

No the trust is still charitable and valid.

Question 11

For the requirment that purpose must be exclusively charitable, what happens if there are multiple purposes?

Answer 11

Each purpose must be chariatble if it has multiple purposes.

Question 12

Who enforces charitable trusts?

Answer 12

Enforced by the attorney general on behalf of the public

Question 13

Can a charitable trust be perpertual (last forever)

Answer 13

Yes

Question 14

What is the inalienability rule?

Answer 14

A rule that prevents proeprty from being transferred within the perpetuity period

Question 15

Does the inalienability rule apply to charitable trusts?

Answer 15

No so they can last forever

Question 16

What is the cy-pres doctorine?

Answer 16

If a charitable trust has failed as its purposes are impossible or cannot be fullfilled an order can be made to make the charitable intentions benefit another charity.

Question 17

If the charitable gift has failed when can cy-pres apply

Answer 17

Only apply if the settlor has shown a general charitable intention.

Question 18

What must a private purpose trust have?

Answer 18

Must have ascertainable human beneficiaries.

Question 19

4 valid private purpose trusts?

Answer 19

1. Denley trusts
2. Trusts for maintenance of a particular group of animals
3. Trusts for the saying of private masses
4. Trusts for maintenance and erection of monuments and graves.

Question 20

What is a denley trust?

Answer 20

A trust that appears to be for a private purpose but is actually the ebenfit for ascertainable beneficiaries

Eg a a trust set up for land to be maintained and used as a sports ground for employees of a particular company.

Question 21

Can beneficiaries of a denley trust use the rule in saunders and vautier to end the trust?

Answer 21

No.

Question 22

What are honary trusts?

Answer 22

1. Trusts for the maintanence of a particular group of animals
2. Trusts for the saying of public masses
3. Trusts for the maintenance and erection of monuments and graves.

Question 23

Can honary trusts continue for more than the perpetuity period?

Answer 23

No.

Question 24

What is the perpetuity period?

Answer 24

The perpetuity period is the length of a life or lives in being plus 21 years.

Question 25

What does the personal nexus rule mean?

Answer 25

They are all linked to one person or to several people or to a company or several companies.

Question 26

What are imperfect obligation trusts?

Answer 26

Maintainence of animals or graves as the objects are unable to enforce them.

Question 27

What is the rule against inalianability of capital?

Answer 27

A trust is void if it makes capital longer than the perpetuity period.

Question 28

How must fee paying schools maintain their charitable status?

Answer 28

Must provide assistance to children who cannot afford their tuiotion fees.