Charitable Trust Flashcards
What is the purpose of a charitable trust
Relief of poverty,advancement of education/religion, good health, gov purposes and other purposes benefiting the comm at large
Who are the beneficiaries of a trust?
A trust has indefinite beneficiaries, the beneficiaries must be the community at large, directly or indirectly
What happens if there is a failure to follow turst terms
if the charity fails to follow trust terms, the trustee can suer return of the funds provided to the trust
What’s the Cy prep Doctrine
A court may modify a charitable trust to seek an alt charitable purpose if the original one becomes illegal, impracticable or impossible to perform.
How do you determine if you should modify a trust?
the court will analyze whether the trust has a specific intent to help one charity or a general intent to help charity. If there is specific intent, the court may not modify the trust and the trust will be terminated and become a resulting trust 9 aan implied trust the is helf for the settlor or his/her heirs)
