Equity & Trusts - Charitable Trusts

Question 0

s2 PAA 2009

Answer 0

Rule against inalienability does not apply to charitable trusts

Question 1

Morice v Bishop of Durham

Answer 1

Trusts need to have identifiable Bs. Charitable trusts are enforced by the A-G.

Question 2

Christ’s Hospital v Grainger

Answer 2

Gift-overs from one charity to another may fall outside the PP

Question 3

s3 CA 2011(previously s2(2) CA 2006)

Answer 3

13 heads of charity

Question 4

Pemsel’s Case

Answer 4

Original 4 heads of charity:

• Poverty
• Education
• Religion
• Benefit to the community

Question 5

Re Coulthurst

Answer 5

Poverty need not mean deprivation; going short will suffice

Question 6

Re Hopkins

Answer 6

Education must be of benefit to researcher/wider community of knowledge

Question 7

Thornton v Howe

Answer 7

Religion does not require beliefs to be valid

Question 8

Church of Scientology v Kaufmann

Answer 8

Beliefs must not amount to ‘pernicious nonsense’

Question 9

s4 CA 2011

Answer 9

Purpose must serve public benefit

Question 10

s4(1) CA 2006

Answer 10

Charities Commission must issue guidance on what constitutes public benefit:

• Benefits must be obvious
• benefits must be related to the aims

Question 11

Re Smith

Answer 11

Limitation to a geographic area will be of sufficient public benefit

Question 12

Re Girls’ Public Day School Trust

Answer 12

Public benefit excludes any organisation making a private profit

Question 13

Oppenheim v Tobacco Securities

Answer 13

Class may not be connected by a ‘personal nexus’

Question 14

Re Compton

Answer 14

Trusts for named beneficiaries will probably not be of public benefit

Question 15

Re Koettgen

Answer 15

Preferential treatment may be given to one class, but not at the exclusion of others (75% max)

Question 16

s11 CA 2011

Answer 16

Purpose must be exclusively charitable

Question 17

Baldry v Feintuck

Answer 17

Trusts that seek to change government policy are not exclusively charitable

Question 18

McGovern v A-G

Answer 18

Trust will succeed if political motives are only ancillary to aims

Question 19

Chichester Diocesan Fund v Simpson

Answer 19

Imprecise wording will cause charitable gift to fail ‘charitable OR benevolent’

Question 20

Guild v IRC

Answer 20

Courts may construe wording to allow purpose ‘or some similar [charitable] purpose’

Question 21

Re Coxon

Answer 21

Courts may sever charitable/non-charitable purposes to preserve validity

Question 22

Salisbury v Denton

Answer 22

Presumed equitable severance of 50:50 (equity is equality) unless trust expressly provides otherwise

Question 23

Re Gillingham Bus Disaster

Answer 23

Uncharitable purpose gives rise to RT in favour of donors

Question 24

Re West Sussex Constabulary Fund

Answer 24

Automatic RT will not apply if impractical to return gift to donor, e.g. anonymous. Instead, it passes as bona vacantia to Crown

Question 25

Re Rymer

Answer 25

Donor must show general charitable intention for cy-pres to apply

Question 26

Re Spence

Answer 26

Naming charity specifically will defeat general intention

Question 27

Re Harwood

Answer 27

Presumption of general charitable intention if donee never really existed

Question 28

Re Faraker

Answer 28

Presumption of general charitable intention if donee has merged with another to carry on it’s work

Question 29

Re Finger’s WT

Answer 29

Presumption of general charitable intention if UA no longer exists, but gift can be construed as for a purpose

Question 30

Re Abbott

Answer 30

Surplus funds will be held on RT for donor

Question 31

Re Osoba

Answer 31

Surplus funds will pass to B if it can be shown that donor intended to part with gift absolutely

Question 32

Re Wright

Answer 32

If a purpose ceases to be charitable, the gift will always be applied cy-pres. It never returns to donor’s residuary legatees

Question 33

Re Slevin

Answer 33

Gift will be applied cy-pres if UA ceases to exist before gift can be made