Charitable trusts

Question 1

4 rules apply

Answer 1

1) not subject to RAP; can be perpetual (pay income to Red Cross forever)
2) must be for charitable purpose (a bequest “to be used for charitable purposes” is valid)
3) must be in favor of a reasonably large number of unidentifiable members of the public at large and cannot benefit identifiable individuals
4) when stated charitable purpose can no longer be accomplished, MAY be reformed in judicial proceeding under the doctrine of cy pres

Question 2

Cy pres

Answer 2

court may apply cy pres to modify or terminate trust by directing that the property be applied or distributed, in whole or in part, in a manner consistent with the settlor’s charitable purposes

“as near as possible”

Question 3

Under UTC, valid trust when beneficiary is an animal?

Answer 3

Yes, only animals alive during settlor’s lifetime can be bens, trust TERMINATES on DEATH of animal (or last surviving animal)

Question 4

Under UTC, valid trust when beneficiary is an object?

Answer 4

Yes, trust valid for 21 years