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Law Notes Trusts Notes

Charitable Trusts Notes

Updated Charitable Trusts Notes

Trusts Notes

Trusts

Approximately 51 pages

Here you will find summarised trust law notes for the entire Monash University topic.

The summary notes are an excellent exam help, with steps to work through all topics. They contain relevant precedent and case citations for that HD answer, along with brief summaries of every case. They are short enough for use in an exam, but detailed enough that you will never miss a point....

The following is a more accessible plain text extract of the PDF sample above, taken from our Trusts Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Charitable Trusts

  • The beneficiary principle: Trusts must be in favour of identifiable beneficiaries; a trust for a purpose rather than a person will be invalid

  • Not the case for valid charitable purposes for the public benefit (since the Elizabethan Statute of Charitable Uses)

  1. Introduction

  • Enforced by the Attorney-General

  • Need to work out what the settlor’s intention was, that is, the purpose for which the money can be applied.

  • Certainty tests don’t apply to charitable trusts; validity depends on purpose and public benefit. But make sure you go through certainty of object first

  • Charitable trust can be varied under doctrine of cy-près

  • Not subject to the rule against perpetuities (can exist for longer than 80 years – can go forever so long as there is still trust property available)

  • Tax deductible status

  • Must be for

    • Charitable purpose (Pemsel); and

    • Public benefit (Re Shaw)

  1. Heads of charity – Must be for charitable purpose 1 of 4 categories - Pemsel

  • Charitable purpose is one which falls within the spirit and intendment of the Statute of Elizabeth and is for benefit of the public

    • Relief of poverty

      • Trust does not need to use the word poverty or poor but some sense of assisting those in need must be found Downing v FCT

        • E.g. “Knickers given to boys in the area so long as not getting assistance” did not imply a relief of poverty as it could equally apply to rich boys Re Gwyen

      • People are in need of relief if their lot needs improvement; they don’t need to be destitute Downing

        • Poverty is a relative concept, you need to be poor relative to the majority of the community

      • Can target a small group of people; it is in the public benefit as it relieve the strain on the public purpose Re Segelman

        • But make sure the trust is a gift for the relief of poverty, not a gift to particular poor persons connected to the settlor, the relief of poverty being the motive of the gift.

      • Examples:

        • Poor and needy persons of testator’s family Re Segelman

        • “Poor former employees” of a company Dingle v Turner

      • Does not need to benefit the public or a section of the public Dingle v Turner


  • Advancement of Education

    • For court to decide if it is educative, not the settlor Re Shaw

    • Can’t be for the benefit of a private class Opeenheim

    • Must have an educative value; for the court to decide Re Pinion; Re Shaw

    • Factors:

      • Dissemination of knowledge/educative value/must be some element of teaching, increasing public knowledge is not enough (e.g. propaganda – Re Shaw)

      • Research – must be disseminated or otherwise contribute to public knowledge Re Hopkins Will Trusts

        • Can’t just be research for researches sake

        • Must be of educational value to the researcher so as to lead to something which will pass into the store of educations material, or improve knowledge in the area Re Hopkins Will Trust

    • Examples:

      • Displaying worthless personal belongings - NO (Re pinion)

      • Mainstream academic research – YES (Re Hopkins)

      • Includes formal and informal education, scholarships and prizes, educational facilities, drama, fine arts, and moneys for research

  • Advancement of religion

    • Is it a valid religion?

      • Expansive view of the concept of religion Church of the new faith

        • Mason CJ & Brennan J: belief in a supernatural thing, being or principle; the acceptance of canons of conduct give effect to the belief. Almost every known religion will fall within this definition

        • Murphy J: anything which gives meaning to the person’s life; vague, suggests absurd beliefs such as cults can be included. Not up to court to decide whether the doctrines were true.

        • Wilson & Deane JJ: collection of ideas and/or practices involving belief in the supernatural; the ideas relate to man's place in the universe; the ideas are accepted by adherent; the adherent constitute an identifiable group, adherent have to see it as constituting a religion

      • Masons

        • Not a religion as there was no religious test of membership, no missionary element and no steps taken to increase belief

      • Re Watson

        • A sect of 2 people constituted a religion

    • Does it advance religion?

      • Includes support of clergy, buildings, sermons, missionary work etc

      • To promote, spread its message, take steps to sustain and increase religious belief (Holborn)

      • Cannot be for religious organisations themselves; must be for advancing the religion McCraken v AG Victoria

        • A newsletter wasn’t enough Re Lawler

      • Building a masonic lodge was not advancing the religion. To promote good citizenship, honest work, morality and wisdom, brotherly love, compassion, charity to the poor, and belief in a supreme architect of heaven and earth is not advancement of a religion. No promotion United Grand Lodge of Ancient Free and Accepted Masons

  • Other purposes beneficial to the community (must positively demonstrate it is for public benefit)

    • Must be beneficial to the community; and

    • Within the preamble of the Statute of Elizabeth

      • relief of aged, impotent and poor

      • maintenance of sick and maimed soldiers and mariners

      • schools of learning, free schools and scholars in university

      • repair of bridges, ports, havens, causeways, churches, seabanks and highways Bathurst City Council

      • education and preferment of orphans

      • relief, stock and maintenance of houses of correction

      • marriages of poor maids

      • support aid and help for young tradesman, handicraftsmen and persons decayed

      • relief or redemption of prisoner and captives

      • aid and ease of any poor inhabitants concerning payment of fifteens

      • setting out soldiers

      • Relief of human distress after natural disasters

    • Sport

      • Trusts solely for the purpose of sport and recreation are not for a charitable purpose Chester

      • However, if a trust for spot is valid if it is attached to another charitable purpose Kearins v Kearins

      • Might also be for benefit of public if it helped those enrolled in formal course of study (linked with advancement of education) IRC v McMullen

      • Example:

        • Pigeon racing purely recreational Royal National Agricultural and Industrial Assoc v...

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