Charitable Trusts

Question 1

Does a charitable trust need to have clearly ascertainable beneficiaries?

Answer 1

No

Question 2

How do you determine whether a particular purpose is charitable?

Answer 2

Courts will follows a generally accepted standard.

But for religious contributions, the courts will adopt a more liberal standard and consider whether the purpose was against public policy or the law.

Question 3

What is the Cy Pres Doctrine?

Answer 3

If there is a change of circumstances which makes it impossible or impractical to carry out the original purpose of the trust; and the trust instrument is silent on what to do, the court will consider extrinsic evidence to determine whether the settlor had a general, broader charitable intent than the original purpose.

Question 4

Are charitable trusts bound by the Rule Against Perpetuities?

Answer 4

No and they therefore have an unlimited duration

Question 5

Who is responsible for enforcing charitable trusts?

Answer 5

The attorney general

Question 6

Can a trust have both a charitable and a private purpose at the same time?

Answer 6

Yes