Charity

Question 1

what does inalienability of capital mean

Answer 1

cannot be for more than 21 years

Question 2

what fails the personal nexus test

Answer 2

employees of the same job, care home for example.

Question 3

REMEMBER: if any trust EVER says ANYTHING about ‘poverty’ ‘not going without in life’ ANYTHING like that then what does it AUTOMATICALLY SATIFY

Answer 3

the public benefit test

Question 4

What is the public benefit rule for educational charitable trusts?

Answer 4

Education trusts must benefit the public or a section of the public. They cannot benefit only a private group (e.g. children or employees).

Question 4

What is the public benefit rule for trusts relieving poverty?

Answer 4

: Relief of poverty trusts can benefit a small or personal group (e.g. family) and still satisfy the public benefit requirement.

Question 5

: What is the rule against inalienability and how does it affect non-charitable purpose trusts?

Question 6

Certainty of objects …

Answer 6

Certainty of objects is not required in charitable trusts.

Question 7

: Why is a trust for the care and maintenance of a testator’s horse during its lifetime not valid as a purpose trust?

Answer 7

A: Because it offends the rule against inalienability — the trust lasts for the horse’s lifetime, which could exceed the 21-year limit. Although trusts for animals are an exception to the beneficiary principle (as imperfect obligation trusts), they must still comply with the perpetuity rules.