Two Types of Trusts

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Two Types of Trusts There are two types of trusts , private and public trusts. A private trust is for the benefit of an individual or class which are enforceable by the beneficiaries. A public trust is a charitable trust and is the relevant trust to this assignment. A charitable trust is a valid purpose trust. This means that it is perfectly possible to establish a trust for the achievement of a purpose, provided that the purpose in law is regarded as charitable. On the question of enforcement, it matters not that there is no human beneficiary capable of enforcing the trust because the Crown act as parens patriae through the Attorney General in order to ensure that the trustees carry out the terms of the trust. The trustees may be individuals but are more likely to be a corporate body. Although there is no one definition of charity, it is usually accepted that before any institution can be accepted as charitable three conditions must be fulfilled. Firstly, the purpose of the institution must be within the spirit and intendment of the preamble to the Charitable Uses Act 1601. Secondly, the institution must exist for the benefit of the public and, thirdly, it must be exclusively charitable (must no be profit-distributing). The preamble to the Statute of Elizabeth 1 listed objects, which were, and are deemed charitable. Therefore, "the relief of the aged, impotent and poor people, the ma... ... middle of paper ... ...et v A-G [1981] 1 WLR [36] R v Registrar General, ex parte Segerdal [1970] 2 QB 697 [37] Scottish Burial Reform and Cremation Society v Glasgow Corporation [1968] AC 138 [38] Cracknell's Law relating to Charities, Longman, 2nd Ed. 1995 [39] Scottish Burial Reform and Cremation Society v Glasgow Corporation [1968] AC 138 [40] Re Hopkins' Will Trusts (1965) Ch 669 [41] 3 All ER 918 [42] IRC v Braddeley [1955] AC 572 [43] Income Tax Special Purposes Commisioners v Pemsel [1891] AC 531 [44] Sachs LJ in Incorporated Council of law Reporting v Attorney General [1971] All ER 1029 [45] A-G V Herzer,[1985] 2 All ER 263 ( the moonies case) [46] Re Baynes [1944] 2 All ER 597 [47] Report 1981, p 24 [48] Scottish Burial Reform and Cremation Society v Glasgow Corporation [1968] AC 138

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