Charitable Trust
| Author | Jeffrey Lehman, Shirelle Phelps |
Page 318
The arrangement by which real or PERSONAL PROPERTY given by one person is held by another to be used for the benefit of a class of persons or the general public.
The law favors charitable trusts, sometimes called public trusts, by according them certain privileges, such as an advantageous tax status. Before a court will enforce a charitable trust, however, it must examine the charity and evaluate its social benefits. The court cannot rely on the view of the settlor, the one who establishes the trust, that the trust is charitable.
In order to be valid, a charitable trust must fulfill certain requirements. The settlor must intend to create this type of trust. There must be a trustee to administer the trust, which must consist of some res or trust property. The charitable purpose must be expressly designated. A definite class of persons comprised of indefinite beneficiaries within it must actually receive the benefit. The requirements of intention, the trustee, and the res are the same in a charitable trust as they are in any other trust.
A charitable purpose is one designed to benefit, ameliorate, or uplift mankind mentally, morally, or physically. The relief of poverty, the improvement of government, and the advancement of religion, education, and health are some examples of charitable purposes. Trusts to prevent cruelty to animals, to erect a monument in honor of a famous historical figure, and to beautify a designated village are charitable purposes aimed, respectively, at fostering kindness to animals, patriotism, and community well-being.
The definition of charitable purposes is derived from an old ENGLISH LAW, the Statute of Charitable Uses, but has been expanded throughout the years as new public needs developed.
The class to be benefited in a charitable trust must be a definite segment of the public. It must be large enough so that the community in general is affected by, and interested in, the enforcement of the trust, yet it cannot encompass the entire human race. Within the class, however, the specific persons to benefit from the trust must be indefinite. A trust "for the benefit of the orphans of American veterans of the Vietnam conflict" is charitable. The orphans of such veterans constitute a definite class. The indefinite persons within the class are the ones who are ultimately chosen by the...
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