Charitable and non-charitable purpose trusts Flashcards
What are the general rules of a charitable trust
A) Settlor must make a valid declaration of trust.
B) Property must be put into a trust.
What are the two validity rules for trusts?
1) Trusts benefit individuals
2) Shouldn’t be locked away (rule against perpetuity).
In addition to the 3 rules of certainty what 2 other validity rules of trust are there?
1) Beneficiary principle - must be beneficiaries to go to court to enforce.
2) Perpetuity - (125 years) charitable (25 years).
What rules are charitable trust exempt from?
Beneficiary principle and rule against alienability of capital.
what are the conditions a charitable trust must satisfy to be valid?
1) Must be for charitable purpose.
2) Must have sufficient public benefit.
3) Must be exclusively charitable.
What is a Re denley trust ?
A) purpose is sufficiently clear
B) Person standing to benefit must be ascertainable.
C) must not offend rule against alienability of capital (21 years).
What is included in imperfect obligation?
A) Care for specific animals and B) Trusts to maintain graves and tombs. (These are valid but unenforceable).
What are the only ways a non charitable trust can be valid and overcome the beneficiary principle?
Either a Re Denley trust or for imperfect obligation.
What is the beneficiary principle ?
Trusts are only enforceable if if they have beneficiaries that can go to court to enforce them
What is the rule against perpetuities ?
For trusts for Individuals the limit is 125 years, for purpose trusts it is 21 years.
