Charitable Trusts Flashcards
What are purpose trusts
Trust to carry out a purpose or an advancement of a cause
What must be valid for the declaration of a purpose trust/
Certainty of intention, subject matter and objects. Beneficiary principal (this is an issue_ and perpetuities
Aas a rule, are purpose trusts usually valid?
No as they breach the beneficiary principal. Beneficiaries cannot go to court to enforce them, and therefore as a rule, they are void.
What is the rule against perpetuities?
Should not be locked away in trust for too long.
221 years - inalienability of capital.
What are charitable trusts?
Exempt from the beneficiary principle and rule against inalienability, therefore are valid if the meet charity requirements
What are the 3 requirements for a charitable trust to be valid?
Trust must be for charitable purpose
Trust must have sufficient public benefit.
Trust must be exclusively charitable
What does it mean for the charitable trust to have sufficient public benefit?
Trust must have identificable benefits that must accrue to a sufficiently large section of the public.
Where are the charitable purposes listed?
S 3(1) of the charities act 2011
What happens if a charitable trust benefits a restricted group?
It depends on the charitable purpose as to if it is valid or not.
If relief of poverty for named individuals, NO. If relief of poverty for my relatives, YES.
If religious, will be public benefit if place of worship, even if small.
Education: if linked to a personal nexus, NO. Class within a class: YES usually. For example, geographical restrictions are usually ok.
CANNOT exclude the poor.
What purposes are not exclusively charitable?
Political purposes
Profits from the charitable organisation charge fees go back into the trust.
What are the two valid non-charitable purpose trusts?
Re Denley
Imperfect obligation trust
What is the re Denley trust?
If trust identifies people who will benefit from a paraticular purpose.
What must be met for a rare Denley trust to be valid?
Purpose must be sufficiently clear, and give rise to sufficiently tangible benefit
Persons who stand t benefit from carrying out of purpose use be ascertainable.
Trust must not offence r221 inalienability of capital principle
What is an example of NOT a valid re Denley trust?
I give 500,000 on trust for building and maintain a gymnasium or use my employees of ___ limited
What are trusts of imperfect obligation?
Care for specific animals
Maintain graves and tombs
