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Charitable Trusts Notes

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This is an extract of our Charitable Trusts document, which we sell as part of our Trusts Notes collection written by the top tier of Monash University students.

The following is a more accessble 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-pres
? 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 o Charitable purpose (Pemsel); and o Public benefit (Re Shaw)

2. 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 o 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

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