Express Trusts: Charitable Trusts

Question 1

Charitable Purpose

Answer 1

Must have a charitable purpose:

(1) Relief of POVERTY
(2) Advancement of EDUCATION or RELIGION
(3) Promotion of good HEALTH
(4) GOVERNMENT or municipal purposes

(5) Other purposes benefiting the community at large or a particular segment of the
community

Question 2

What if Terms of Trust Do Not Indicate Particular Charitable Purpose?

Answer 2

Court may select one or more charitable purposes when terms of trust do not indicate a particular charitable purpose

MUST be consistent with settlor’s INTENT

Question 3

RAP

Answer 3

Charitable trusts are exempt from RAP

Can last forever

Question 4

Cy Pres Doctrine

Answer 4

Under the cy pres doctrine, a court can modify a trust if the trust’s charitable purpose is no longer possible

Terms of charitable trust prevail if:

(1) Settlor is alive, and trust property is to revert to settler; or
(2) Less than 21 years have elapsed since trust was created

Question 5

Indefinite Beneficiaries

Answer 5

Beneficiary must be:
(1) COMMUNITY AT LARGE; or

(2) Class comprising UNIDENTIFIABLE MEMBERS

CANNOT be a named individual or a narrow group of individuals

Question 6

Honorary Trusts

Answer 6

Have no private beneficiaries

Usually for a pet

Can last for 21 years