Charitable Trusts

Question 1

Distinct Rules

Answer 1

Must have indefinite Bs

Cy pres doctrine applicable

May be perpetual (not violate of rule against perps)

Question 2

Must be for charitable purposes

Answer 2

Purpose must be to benefit the public which includes relief of poverty, advance of religion or education, promotion of health and accomplishment of governmental purposes.

Trust for political party is NOT charitable.

Charitable purpose may be expressed in very general terms.

Focus on effect, not motive of the settlor to establish charitable purpose.

If for non charitable purposes as well, it is a mixed trust and special rules for charity trust do not apply (unless two separate trusts can be found).

Question 3

Indefinite beneficiaries

Answer 3

MUST be indefinite.

Question 4

Enforcement of charitable trusts

Answer 4

Suit to enforce can be brought by the settlor, qualified B, or state AG

Question 5

Rule against perpetuities does not apply

Answer 5

However, the rule will apply to a limitation shifting the interest from a private use to a charitable use or vice versa.

Question 6

Cy pres

Answer 6

If the specific charitable purpose becomes accomplished, impracticable, unlawful, wasteful, etc., the court may direct that the trust property be applied to another charitable purpose that is as close as possible to the original.