Charitable Trusts and other Purpose Trusts Flashcards
Can charitable trusts be perpetual?
Yes
A trust will qualify as a charitable trust only if it is for a …
recognised charitable purpose
What are the three main requirements for a charitable trust?
- Charitable purpose
- Identifiable benefit
- To section or whole of the public
What is a trust for a private group and are they usually charitable trusts?
Where a group which will benefit from a trust is defined by reference to the relationship of the group’s members with a private individual or business
These are not charitable and will usually fail (unless it incidentally benefits private individuals)
What is initial failure?
Where a charitable gift/trust becomes impossible to carry out at the time it comes into operation
When will funds be applied cy-pres on an initial failure?
If the Settlor has shown a general charitable intention
What is subsequent failure?
Where the objectives of a charitable gift/trust become impossible to carry out after it comes into operation
When can funds be applied cy-pres on a subsequent failure?
Automatically - no need to show general charitable intention
What are honorary trusts? Give 3 examples.
Trusts without an ascertainable human beneficiary that are valid but has no one to enforce them
1. Maintenance of pets
2. Monuments and graves
3. Saying of masses
What’s the perpetuity period of honorary trusts?
21 years (or a human life in being + 21 years)
A trust for animal maintenance will ____ unless specific provisions are made limiting its _______
fail, duration
What is a Denley trust?
A trust which appears to be for a private group, but which is directly or indirectly for the benefit of ascertainable human beneficiaries
Are Denley trusts generally valid? If so, as what?
Yes - as noncharitable purpose trusts
Define a noncharitable purpose trust
A trust that is not for the benefit of a human beneficiary and is not a charitable trust
A noncharitable purpose trust must be consistent with what?
Public policy
