Charitable Trusts

Question 1

Distinguishing characteristics of charitable trusts

Answer 1

-cannot have ascertainable beneficiaries (other than qualified charitable organizations)
-RAP doesn’t apply
-trust doesn’t automatically end upon the trust purpose being accomplished, or becoming impracticable or impossible to accomplish

Question 2

Requirements for charitable trusts

Answer 2

1. charitable purpose
2. beneficiaries must be indefinite

Question 3

What counts as a charitable purpose for the purposes of charitable trusts

Answer 3

charitable purposes might include:
-relief of poverty
-advancement of education or religion
-promotion of health
-performance of governmental and municipal purposes
-other purposes beneficial to the community at large

Question 4

How does cy pres apply to charitable trusts

Answer 4

If exact charitable purpose cannot be met, court may direct the application of the trust property to another charitable purpose that approximates the settlor’s intentions

Question 5

When can cy pres be applied to charitable trusts

Answer 5

1. settlor’s specific charitable purpose becomes impossible, impracticable or illegal to carry out
2. settlor had, in addition to this specific charitable purpose, a general charitable intent