06 Purpose Trusts: Charitable Trusts and Non-Charitable Purpose Trusts

Question 1

What is a charitable trust?

Answer 1

Charitable trusts are a type of purpose trust set up for a charitable purpose. They have a public purpose. They are governed by the Charities Act 2011.
2 requirements:
- the purpose of the trust must be exclusively charitable;
- the trust must be for the public benefit.
Charitable trusts are exempt from the Beneficiary Principle and the Rule Against Inalienability of Trust Capital.