Charitable Trusts Essay Charitable trusts Charitable trusts are valid purpose trusts. This means that if it perfectly possible to establish a trust for the achievement of a purpose, provided that the purpose in law is regarded as charitable. As far as charities are concerned, it is not important that there is o human beneficiary capable of enforcing the trust because the Attorney General may take action in respect of all charitable trusts subject to certain aspects of the perpetuity rule and may be of unlimited duration.
In light of the above statement, critically discuss to what extent the Charities Bill will affect the law on charities.
The Charities Bill CB main area of change has been in the categories of charitable trust which goes down to the heart of definition, but as Quint argues there Charitable trusts law essay no guidance for the courts in what exactly a charitable trust is rather there are twelve categories for this type of trust to be part of.
The following discussion is going to explore the categories of that the CB contains and determines whether the Bill will bring significant change in the definition of a charitable trust or just adds further confusion to the issue.
The Bill does deal with the meaning of charity whereby a charity is an organization that must have exclusively charitable purposes and must fall within in one of the twelve categories listed in the CB. The first category is the prevention or relief of poverty; whereby poor is defined Charitable trusts law essay people in need and the actions of the charity is to relieve these people of their destitution.
The second category is the advancement of education which is a charitable organization, i. The third category is the advancement of religion where a religion was defined as in the decision of the Registration by the Church of Scientology: The fourth category of charity is the advancement of health, i.
The law takes a relatively broad interpretation of what constitutes education and it extends to things like research (Re Hopkins' Wills Trust . Public Benefit In order to be charitable, the objects of a trust must be for the benefit of a section of the public. This essay has been submitted by a law student. This is not an example of the work written by our professional essay writers. An overview of charitable trusts: Charities Bill Introduction. Charitable trusts are valid purpose trusts. A Charitable trust is a trust for a purpose, but where the purpose is regarded as sufficiently beneficial. Chapter 6: Outline answers to essay questions Critically discuss the impact of the Charities Act on the public benefit requirement. Note: the laws relating to charitable trusts and their administration have recently been consolidated by the Charities Act
The fifth category is the advancement of citizenship or community development, i. Also it can include programmes to ensure the reformation of criminal offenders. The sixth category is the advancement of arts, history and science, i. The seventh category is advancing amateur sport, i.
The eighth category is important for supporters of Amnesty International where the advancement of human rights, conflict resolution and reconciliation is a category; whereby groups like this excluded because they are political in nature.
The advancement of environmental protection now brings in the ambit of Greenpeace and the WWF into their own category, which is the ninth category of charities. The tenth category, animal welfare has its own ambit, which is important for animal rights campaigners, especially against the charitable organizations of health advancement that test on animals.
Finally, the twelfth category deals with any charitable organization working for another purpose, leaving flexibility in the legal system for new charities to deal with new problems. Therefore these heads do clear up what a charity is and help aid the courts in determining whether there is a charity for a charitable trust.
Yet the definition of what exactly a charitable trust is not dealt with therefore leaving it up to the old law; however most of the criticism of charitable trust law was that the categories of the trust type were not flexible enough, leaving out groups such as Amnesty International.
This new Bill remedies this and clears the roads for the courts in determining the meaning of what is a charity. As Quint points out there is one main deficiency with the Bill with respect to defining a charitable trust which it does not deal with the requirement of public benefit: The draft Bill does not contain any guidance on the factors which should be taken into account in assessing whether a charity fulfils the public benefit requirement, either on seeking registration or later.
It leaves this to the general law. A number of large charities have argued that the Bill should include such guidance, if not a strict definition of what benefits the public, in order to reduce uncertainty and enable charities and proposed charities to plan their work.
Does this mean that any minute benefits suffice or does the benefit have to be sufficient to be classed as a charity? This will cause further problems in the court, especially with problem of public schools such as Eton classing themselves as charities but they only benefit exclusive sectors of society.
Therefore in this respect the new CB is deficient in helping define what a charitable trust is; however it has clarified the categories and included categories that have long been excluded, i. Martin Hanbury and Martin: This discussion will go over the requirements of a trust and then discuss when the courts will vary a trust.
The power for the court to vary trusts comes from the Variation of Trusts Act where it was a statutory insurance that the court could ensure beneficiaries received the proceeds of a trust where under the present trust there is some confusion over the rights of the beneficiary.
The testator must make his intentions clear when creating his trust; he must make it clear which property is subject to the trust; and finally he must identify the beneficiary of the trust. In Wright v Atkynsit was determined that the words must be imperative, but there does not have to be created with the word trust or obligation but sufficient intention must be apparent from conduct and words.
The court will always aim to impose a trust as long as the intention of the testator is present, i. Therefore the court will determine the subject matter as long as there is enough clarity made by the testator. Finally the trust must clearly state the beneficiaries of the trust, i.
To ensure that a trust is successfully completed then the trustees must know all the beneficiaries of the trust, i.The main aim of charitable trusts is for benefit purposes and it is not for individual beneficiaries or objects. Also, charitable trusts must considere to be of such value and importance to the community that they receive favourable treatment.
Lord Macnagthen summarized these purposes into four categories. Charities Trusts Law Essay.
Law Essay Question 1: The Charities Bill will have no significant effect on the meaning and ambit of the "definition" of charitable trusts - all charitable trusts are nothing more than concessions to human sentiment anyway'. In light of the above statement, critically discuss to what extent the Charities Bill will affect the law on charities.
Charities form an unique category Charities must use the charity's property for a “charitable purpose” which must be for the benefit of the benefit of the public Re Compton. The definitions of what a charity is and its purpose are explained in the Charities Act and is subject to the control of the High court.
The law takes a relatively broad interpretation of what constitutes education and it extends to things like research (Re Hopkins' Wills Trust .
Public Benefit In order to be charitable, the objects of a trust must be for the benefit of a section of the public. Chapter 6: Outline answers to essay questions Critically discuss the impact of the Charities Act on the public benefit requirement.
Note: the laws relating to charitable trusts and their administration have recently been consolidated by the Charities Act Charitable trusts.
Charitable trusts are valid purpose trusts.
A Charitable trust is a trust for a purpose, but where the purpose is regarded as sufficiently beneficial to the community at large to warrant acceptance of validity. This means that if it perfectly possible to establish a trust for the achievement of a purpose, provided that the purpose in law is regarded as charitable.