Charitable Trusts

Question 1

Where was the concept of a charitable trust first outlined?

Answer 1

Charitable Uses Act 1601 (Statute of Elizabeth), Preamble: for the relief of aged, impotent and poor people’

Question 2

Which section of the Charities Act 2011 states charitable purposes?

Answer 2

The purposes are stated under s3, while s4 states that the purpose must be for the public benefit

Question 3

What are some of the benefits of charitable trusts?

Answer 3

Objects need not be certain

Tax exemptions

Relaxation of rule against perpetuities

Trustees can vote by majority

Question 4

What are the three requirements of a charitable trust?

Answer 4

It should be of a charitable nature

Should be wholly and exclusively charitable

Should be for the promotion of public benefit

Question 5

What dis the case of Re Coxen show?

Answer 5

Despite the inclusion of a non-charitable object the trust was valid, as this object was ancillary/incidental to the main object

Question 6

Where alternatives are given and one of the alternatives is not charitable, is the trust valid/invalid?

Answer 6

It is invalid, under Chichester Diocesan Fund v Simpson

Question 7

Is a ‘charitable or benevolent’ purpose valid?

Answer 7

No, under Chichester Diocesan Fund v Simpson

Question 8

What is the personal nexus test?

Answer 8

A trust will not be charitable if the distinguishing feature of a class is their relationship to a particular person or employer, because they don’t constitute a sufficient section of the public

Question 9

Where the word ‘and’ is used between two purposes and the first is charitable, what happens?

Answer 9

The second is read in conjunction with the first, as per AG Bahamas v Royal Trust held not charitable

Question 10

Which case establishes that the Preamble (aged, impotent and poor) is to be read disjunctively (as if with an ‘or’)?

Answer 10

re Glyn’s WT, in which residuary to build free cottages for old people was upheld

Question 11

What was the decision in Re Gwyon?

Answer 11

A gift for knickers for the boys of Farnham failed as it was not wholly and exclusively charitable

Question 12

Does the accumulation of knowledge hold as a charitable purpose?

Answer 12

No, under Re Shaw’s WT where the wish to research a 40 letter alphabet was held not to be valid

Question 13

Which case held that “the education of artistic taste is one if the most important things in the development of a civilised human being”?

Answer 13

Royal Choral Society v IRC

Question 14

In which case did a fund for the maintenance of art and the artist’s studio fail, due to the low quality if the work?

Answer 14

Re Pinion

Question 15

Is a belief in a god/gods required for it to be charitable?

Answer 15

No, under s3(2) Charities Act 2011

Question 16

Which case showed that there must be an advancement of religion to be valid?

Answer 16

Gilmour v Coates, where a gift to a community of cloistered nuns was not valid as they were not engaged in external work

Question 17

Is a gift to a clergeyman by virtue of his office charitable?

Answer 17

Prima facie yes, but if there’s a purpose attached to the gift it must be charitable, as per Re Garrard

Question 18

Which trust failed? For ‘parish work’ (Farley v Westminster Bank) or ‘for his work in the parish’ (Re Simson)

Answer 18

‘Parish work’ in Farley v Westminster bank

Question 19

In which case was it held a trust for animals was checked “an innate tendency to cruelty…repress brutality, and thus elevate the human race”

Answer 19

Re Wedgewood