Charitable purpose trusts

• What is a characteristic of charitable purpose trusts?

  They may be perpetual (never ending).
• What is required for a trust to be considered a charitable purpose trust?

  It must be for a recognized charitable purpose.
• What are some recognized charitable purposes for a trust?

  Advancement of education, religion, health, human rights, the arts, science, heritage, animal welfare, and amateur sports.
• What is the requirement regarding the benefit of a charitable purpose trust?

  It must be for an identifiable benefit to the public or a section of the public.
• Why would opening a house as a museum not qualify as a charitable purpose trust?

  Because the contents have no merit and do not provide a benefit.
• Can a charitable purpose trust benefit a private group?

  No, it cannot be for the benefit of a private group.
• What happens if a trust incidentally benefits some private individuals?

  The trust will not fail if it incidentally benefits some private individuals, such as staff of the charity.
• Who can enforce a charitable purpose trust?

  The Attorney General can enforce the trust.
• What is the perpetuity period for an initial gift to charity?

  It must vest within a perpetuity period of 125 years if it is going to a person.
• What is the exception to the perpetuity period for gifts between charities?

  A gift from one charity to another does not need to comply with the perpetuity period if the first charity ceases to exist.
• What is the cy-pres doctrine?

  It applies when the charitable purpose of a trust is impossible or impractical to carry out.
• What can the court do under the cy-pres doctrine?

  The court can direct that the trust property be applied to another similar charitable purpose.
• What is required if a charitable purpose becomes impossible or impractical to carry out at the time it comes into operation?

  It is necessary to find evidence of general charitable intention in cases of initial failure.
• What happens if a charitable purpose becomes impossible or impractical after it has come into operation?

  Cy-pres can be applied without the requirement to show general charitable intention.
• What is an honorary trust?

  It is a non-charitable purpose trust.
• What are some examples of honorary trusts?

  Trusts for the maintenance of pets, private masses, and the erection and maintenance of monuments and graves.
• How long can honorary trusts continue?

  They cannot continue after a perpetuity period of 21 years or (human life + 21 years).
• What specific provisions must be made for honorary trusts?

  No presumption on the death of animals must be made.
• What is a Denley trust?

  It is a purpose trust for the benefit of ascertainable human beneficiaries.
• How do beneficiaries of a Denley trust differ from traditional beneficiaries?

  Those benefiting can enforce the trust but do not have a beneficial interest and cannot terminate the trust.
• What is an example of a Denley trust?

  Trustees holding land as a sports ground for the use and enjoyment of employees of a particular company for 21 years from the death of the last survivor of a group of named individuals.