The Distinction between Charitable Trusts and Non-Charitable Purpose Trusts Flashcards
(14 cards)
Which principle renders private purpose trusts generally void?
A. The Rule Against Perpetuities – trusts cannot last more than 125 years
B. The Rule Against Accumulations – income cannot be accumulated indefinitely
C. The Duty to Disclose – all trustees must be named
D. The Beneficiary Principle – there must be a human beneficiary to enforce a trust
D. The Beneficiary Principle – there must be a human beneficiary to enforce a trust.
Explanation: Private purpose trusts lack anyone to enforce them, so they fail unless they fall into narrow exceptions
Which of these is NOT a recognized exception allowing a private purpose trust to succeed?
A. Maintenance of monuments and graves
B. Saying of private masses
C. Maintenance of a family pet
D. Advancement of education to a public school
D. Advancement of education to a public school.
Explanation: Education must be for the public benefit (charitable) to succeed; private school doesn’t qualify as a PPT exception
Under the Charities Act 2011, to qualify as a charitable trust a trust must be:
A. For exclusively charitable purposes and for the public benefit
B. Limited to relief of poverty only
C. Established by statute
D. Subject to the Rule Against Alienability
A. For exclusively charitable purposes and for the public benefit.
Explanation: s 1(1) defines charities as exclusively charitable and public-benefit trusts
Which perpetuity rule applies to charitable gift-over clauses?
A. Vesting must occur within 125 years
B. Must vest within life in being plus 21 years
C. No vesting requirement for any gift-over
D. Must vest within 50 years
B. Vesting must occur within 125 years.
Explanation: Charitable gift-overs to non-charities must vest within 125 years; gifts between charities may last indefinitely
A will leaves £10,000 “to maintain my cat Fluffy.” This trust is:
A. Void as a private purpose trust, unless it fits the animal-maintenance exception
B. Valid as a charitable trust for animal welfare
C. Enforceable by the RSPCA as a charitable purpose trust
D. Subject to the Rule Against Perpetuities only
A. Void as a private purpose trust, unless it fits the animal-maintenance exception.
Explanation: Pet-maintenance is one of the narrow PPT exceptions; otherwise PPTs fail
A settlor creates “a trust to advance the education of children in my village.” This is:
A. A charitable trust, if the beneficiaries are sufficiently numerous
B. An invalid PPT for lacking a human beneficiary
C. A private purpose trust because only village children benefit
D. Void for uncertainty of purpose
A. A charitable trust, if the beneficiaries are sufficiently numerous.
Explanation: Advancement of education is a recognized charitable purpose, provided it meets the public-benefit test
“£5,000 to decorate my family mausoleum.” The result is:
A. Valid as a PPT under the monuments exception
B. Valid as a charitable trust to preserve heritage
C. Void for lack of public benefit
D. Void for uncertainty of quantum
A. Valid as a PPT under the monuments exception.
Explanation: Maintenance of monuments/graves is a classic private purpose exception
A gift “to promote space research” is:
A. A valid charitable trust under advancement of science
B. A private purpose trust because it lacks individual beneficiaries
C. Void for failing the beneficiary principle
D. Void for being too specific
A. A valid charitable trust under advancement of science.
Explanation: Promotion of science is a recognized charitable head, with public-benefit requirement
How do perpetuity rules differ between a non-charitable PPT and a charitable trust?
A. PPTs use life + 21 years; charities use 125 years for gift-overs
B. PPTs can last indefinitely; charities are limited to life + 21 years
C. Both use 125 years for vesting
D. PPTs use 50 years; charities have no limit
A. PPTs use life + 21 years; charities use 125 years for gift-overs.
Explanation: PPTs fall under the Rule Against Alienability (life + 21); charities under the Remoteness of Vesting rule (125 years)
Which body enforces charitable trusts but has no role in private purpose trusts?
A. The Charity Commission
B. The Attorney General
C. Both A and B
D. The Law Commission
C. Both A and B.
Explanation: Charitable trusts are enforced by the Charity Commission and the AG; PPTs have no such regulator
Why can a trust “to clear the weeds from my estate” fail?
A. It’s a private purpose outside the narrow PPT exceptions
B. Weeding is a charitable activity for environmental benefit
C. It’s a charitable trust of maintenance
D. It’s void for uncertainty because “weed” is undefined
A. It’s a private purpose outside the narrow PPT exceptions.
Explanation: General maintenance of private land is not an allowed PPT exception
A trust “for the relief of poverty among my neighbours” is:
A. Charitable if “neighbours” is sufficiently large a class
B. Void because neighbours are too few
C. A private purpose trust that fails despite poverty relief
D. A charitable trust at the discretion of the Charity Commission
B. Void because neighbours are too few.
Explanation: Relief of poverty is charitable but must benefit a sufficiently numerous section of the public; “neighbours” in a small area may fail the public-benefit test
How does certainty of purpose differ between charitable and private purpose trusts?
A. Charitable trusts require absolutely clear purposes, whereas private purpose trusts allow broad, uncertain aims
B. Both require the same level of certainty of purpose
C. Charitable trusts allow the Charity Commission to resolve any lack of precision, whereas private purpose trusts must have absolutely clear, narrowly defined purposes
D. Private purpose trusts allow the court to fill in vague purposes, whereas charitable trusts do not
C. Charitable trusts allow the Charity Commission to resolve any lack of precision, whereas private purpose trusts must have absolutely clear, narrowly defined purposes.
Explanation: Charitable trusts benefit from the Commission’s power to interpret and determine unclear charitable purposes, but private purpose trusts fail unless the purpose is crystal-clear and falls within the narrow exceptions
Who enforces private purpose trusts when they exist, versus charitable trusts?
A. A private trustee enforces private purpose trusts; the Charity Commission enforces charitable trusts
B. The Attorney General enforces both private and charitable purpose trusts
C. No one enforces private purpose trusts (so they fail), whereas the Attorney General and Charity Commission enforce charitable trusts
D. Individual beneficiaries enforce private purpose trusts; no one enforces charitable trusts
C. No one enforces private purpose trusts (so they fail), whereas the Attorney General and Charity Commission enforce charitable trusts.
Explanation: The lack of an enforcing body for private purpose trusts means they cannot be upheld; charitable trusts, by contrast, have statutory enforcement by the AG and Commission
