Charitable + non-charitable purpose trusts

Question 1

Perpetuity period

Answer 1

21 years (trust must end then, or trustees must be able to spend all of it before then)

Question 2

To be charitable, trust must:

Answer 2

1. be for charitable purpose,
2. have sufficient public benefit,
3. be exclusively charitable

Question 3

Public benefit if purpose is relief from property

Answer 3

Generous- can be as limited as for “my family” (but not named individuals)

Question 4

Public benefit if purpose is advancement of religion

Answer 4

Place of worship must be open to all, or members must “mix with fellow citizens” (can’t be closed convent)

Question 5

Public benefit tests (all other charitable purposes)

Answer 5

1. personal nexus test (people can’t be linked by relationship to person/company)
2. class within a class test (class must be limited only by justifiable reasons)
3. can’t exclude the poor

Question 6

“exclusively charitable” is…

Answer 6

1. can’t have political purposes (only if ancillary to main charitable purpose)
2. profits must be reinvested into charity

Question 7

Valid Re Denley trust if…

Answer 7

• purpose of trust is clear + creates tangible benefit,
• conceptual certainty of people standing to benefit,
• doesn’t offend perpetuity rule