Trusts - Charitable Trusts

Question 0

Scottish Burial Case

Answer 0

To establish a charitable trust needed to be one of Pemsel’s four categories plus

• be for the benefit of the public
• wholly and exclusively charitable

Question 1

Pemsel

Answer 1

Drew together 1601 Act and case law to define 4 categories
Relief of poverty
Advancement of education
Advancement of religion
For other purposes beneficial to the community.

Question 2

Morice v Bishop of Durham

Answer 2

A trust for objects of benevolence and liberty was not charitable.

Contrasted to Re Best (charitable and benevolent)

Question 3

Re Coxen

Answer 3

A trust can have multiple parts and if in relation to the size of the total, a private gift is small, may still be charitable

Question 4

Salusbury v Denton

Answer 4

Size of parts not significant can be separated into private and public parts

(decided prior to Re Coxen)

Question 5

Re coulthurst

Answer 5

Poverty does not mean destitution but means people who have to go short with regards given to their status in life

Question 6

Re Cohen

Answer 6

In needy circumstances qualifies as poverty

In special need does not

Question 7

Gwyon

Answer 7

A gift will not be charitable if benefits the rich as well as the poor

Question 8

Re Scarisbrick

Answer 8

Distinguished between a charitable trust (for relief of poverty amongst a particular description of poor people) and private trusts (a gift to particular poor people)

Question 9

Dingle v Turner

Answer 9

Approved Re Scarsbrick

A personal nexus between the beneficiaries and the testator is not usually charitable but there would be anomalous exceptions (this case was an exception)

Supported by CCG.

Question 10

McGovern v AG

Answer 10

A trust for research will qualify as a charitable trust if

• subject matter is useful
• results disseminated to others
• benefit of public or section of public.

Question 11

Re Shaw WT

Answer 11

There is an intrinsic value in improving skills - charitable

Question 12

Re Nottage

Answer 12

Sport in itself is not valuable

Is as part of a balanced education as Recreational Act 1958 was established to show

Question 13

Oppenheim v Tobacco Securities Trust

Answer 13

The personal nexus test is binding on educational charitable trusts
"No class of beneficiaries can constitute a section of the public if the distinguishing feature which links them together is the relationship to a particular individual through common descent or common employment"

Dissenting judgment 1 a question of degree, to decide on facts, historical precedent for this.
Purpose for funds should be more important

Question 14

Re Koettgen

Answer 14

Preference can be given to a particular group if the beneficiaries are not limited to that group

Caffoor distinguished - as long ad no absolute priority given

Question 15

IRC v Educational Grants Assoc.

Answer 15

If a charitable trust spends a high proportion of its annual income on a private class the income will not receive tax relief

Question 16

Independent Schools Council v CC

Answer 16

Charity trustees which charge high fees are required to take account of whole group of beneficiaries. They have a duty to provide for the poor and this must be more than minimal or tokenistic. No objective benchmarks for those unable to pay full fees - up to trustees to devide on charity’s circumstances. AT THE MOMENT BEING REVIEWED

Question 17

Re King

Answer 17

To repair a church - held charitable

Question 18

Re Douglas

Answer 18

Upkeep of churchyard - charitable

Question 19

Thornton v Howe

Answer 19

Must hold a genuine belief even if implausible

Question 20

Gilmour v Coats

Answer 20

“power of prayer” does not satisfy principle 2. Therefore not charitable as nuns could not go out into the community

Question 21

Neville Estates v Madden

Answer 21

Law assumes some religion is better than none.

Lived in community - contact with public at large. Charitable

Question 22

Re Garrard

Answer 22

Absolute discretion given to the holder of a religious office - charitable

Question 23

Dunne v Byrne

Answer 23

If purposes are specified which include non-charitable purposes (eg social purposes) the gift will not be charitable

Question 24

Williams’ Trustees v IRC

Answer 24

Included social purposes - not charitable

Question 25

IRC v Baddeley

Answer 25

Class within a class is not a sufficient section of society

• not charitable

Question 26

Guild v IRC

Answer 26

“some similar purpose”
- charitable
Interpreted as meaning any purpose similar to the purpose specified (which would fall within the 1958 Act)
Deprivation not needed.

Question 27

National Anti-Vivisection Society v IRC

Answer 27

Held as a political trust. Political trusts are not charitable

Aim of changing laws
Not beneficial to community as detrimental in other areas (medical research/public health)

Question 28

Hanchett-Stamford v AG

Answer 28

Sole surviving memeber
Did not have charitable status as political (sought to change law)

Unicorporated association
Cy-pres did not apply
Money belonged to survivor.

Question 29

Re Wilson

Answer 29

Cy-pres did not apply as testator’s instructions suggested a particular scheme rather than a general charitable intent.

Question 30

Bisoce v Jackson

Answer 30

A general charitable intention to benefit could be applied cy-pres

Soup kitchen in Shoreditch -> to help poor and sick in Shoreditch.

Question 31

Re Rymer

Answer 31

Specific Rector of specific establishement for education of specific diocese.
Ceased to exist - transferred students to another place.

No general charitable intention - cy-pres could not be applied.

Question 32

Re Harwood

Answer 32

Money to Wisbech Peace Society - ceased to exist - failed

Money to Peace Society - never existed - cypres applied.

Question 33

Re Spence

Answer 33

Ceased to exist and specific intent to particular institution “Old Folks Home at Hillworth Lodge”

Cy-pres could not be applied.

Question 34

Re Faraker

Answer 34

Original trust has not been destroyed if the work is carried out by consolidated charities.

NOT cy-pres but continuation of initial charity as part of a larger body

Question 35

Re Finger’s WT

Answer 35

There is a presumption that there is a general charitable intent if there is a gift to an unincorporated association (trust for purpose).

There is a presumption of a particular charitable intent if it is a gift to a company.

Distinction made obiter by Buckley J in Re Vernon’s WT and applied by Geoff J here.

Question 36

Re Jenkin’s WT

Answer 36

If there is a gift for a private purpose together with a number of gifts for charitable purposes, one cannot infer that the gift for a private purpose was intended to be charitable