Purpose trusts

Question 1

Intorduction?

Answer 1

• Charitable purpose trusts – recognises despite the absence of ascertainable beneficiaries
• Non charitable purpose trusts – recognised a valid, in specific, exceptional cases. ENDACOTT EXCEPTIONS

Question 2

Chairtable purpose trusts?

Answer 2

• Enforceable by attorney general
• Charity is a status, with comes:
• No requirement to comply with beneficiary principle
• More flexibility rules on certainty of objects
• No limit on their duration
• Tax benefits

Question 3

Charitable purpose trusts requirements?

Answer 3

• Be for a charitable purpose
• Satisfy the public benefit test
• Be wholly and exclusively charitable
• Falls within s3(1) and
  o Prevention of property
  o Means going short- does not mean destitution. Judges against a person’s status in life. Purpose must not be to benefit the rich – otherwise not wholly charitable. Poverty can be temporary, and inferred.
  o Advancement of education
  o Not confined to formal institution – wide range of organisations qualify – Museums, pre-schools,
  o Advancement of religion
  o Any forms of religion
  o Advancement of health/saving life’s
  o Citizenship/community development
  o Art, culture heritage
  o Advancement of amateur sport
  o Advancement of human rights
  o Environmental protection
  o Relief of those in need
  o Advancement of animal welfare
  o Efficiency of public services
• Is for the public benefit
• No presumption of public benefit
• Charty trustees ay have regard to any guidance by charity commission in pursuance of its public benefit objectives. 2 sections
  o Identifiable benefit – settlors’ belief is not relevant, positives have to outweigh negatives
  o Public or section of the public
  o Possible beneficiaries must not be negligible in number
  o Should be politically neutral

Question 4

Cypres doctrine?

Answer 4

• Where a private trust fails there is usually a resulting trust to settlor
• Where a charitable trust fails – are subject to cy-pres doctrine.
• Any surplus funds will be applied to another charitable purpose by way of a scheme established by charity commission.
• 5 grounds on which the original purpose of a charitable gift can fail
  o the original purpose has been fulfilled and cannot be carried out
  o surplus funds

Question 5

Non charitable purpose trusts?

Answer 5

Endacott exceptions
- Trusts for maintenance of particular animals – like for their two dogs
- Trusts for erection and maintenance of monuments and graves – for private individuals
- Trusts for saying of private masses – if it’s for public benefit then charitable if not then private