Purpose Flashcards
What are the two exceptions to the beneficiary principle?
1Charitable purpose trusts and non charitable purpose trusts.
What are the requirements for a charitable purpose trusts?
- Be for a charitable purpose.
- Satisfy a public benefit test.
- Be wholly and exclusively charitable.
Can charitable trusts last indefinitely?
YES
how clearly must the purpose be defined in a non-charitable purpose trust?
the purpose must be so clearly defined that if the trustees surrendered their discretion the court could carry out the purpose.
What are the 12 heads of charity for charitable purpose trusts?
- prevention of poverty
- education.
- religion.
- health or saving lives.
- citizenship or community development.
- arts, culture, heritage or science.
- amateur sport.
- human rights/equality and diversity.
- environmental protection.
- hardship/disability.
11 animal welfare.
2- armed forces/police
what is the meaning of wholly and exclusively charitable?
ALL purposes must be charitable.
what are the two elements of the public benefit requirement?
- identifiable benefit.
- what constitutes the public?
what constitutes the public or a section of the public?
- possible beneficiaries must not be negligible in number/
- quality which distinguishes them from other members of the community must be a quality that does not depend on their relationship to a particular individual.
Can charities pursue political objectives?
NO, prefer to be politically neutral.
What is the cy-pres doctrine?
Where a charitable purpose trust fails any surplus funds will be applied to another charitable purpose by way of a scheme established by the Charity commission or court.
MUST SHOW GENERAL CHARITABLE INTENT.
What are the Endacott exceptions (exceptions to the beneficiary principle which create a non-charitable purpose trust)
- Trust for the maintenance of particular animals.
- trusts for the erection and maintenance of monuments and graves.
- trusts for the saying of private masses.
What is the perpetuity period for non-charitable purpose trusts?
Trusts must come to an end within the common law period of 21 years/. wait and see rule does not apply.
can exclusion clauses for trustee duties be relied upon if they breach the trust?
not if fraudulent or dishonest!
what is the rule against remoteness of vesting?
rule against remoteness of vesting requires that the interest must vest within the statutory perpetuity period of 125 years. If it does not, the interest in void and the property will typically revert to the settlor’s estate.
