Equity and Trusts: Charitable Trusts and the Cy-près Doctrine

Flashcards covering the categories, formalities, legislative framework (CA NI 2008/2013), and the application of the Cy-près doctrine in charitable trusts.

According to Boy Scouts of Canada v Doyle (1997), what is the first step in determining how to apply property cy-près?

An examination of the trust settlement’s general intent as a prelude to defining the mode which in substance will as nearly as possible execute the general charitable intent.

What is the distinction between 'initial failure' and 'subsequent failure' of a charitable gift according to Re Dunwoodie [1977]?

Initial failure occurs when a gift is impossible or impractical at the death of the testator, while subsequent failure occurs when it becomes impossible or impractical after their death.

How does the Charities Act (NI) 2008 define a 'charity' under section 1(1)?

An institution which is (a) established for charitable purposes only, and (b) falls to be subject to the control of the Court in the exercise of its jurisdiction with respect to charities.

What historical legislation provided the key definition of charitable purposes prior to the 2008 and 2013 Acts?

The Preamble to the Charitable Uses Act 1601.

Name three advantages of charitable trusts over private purpose trusts mentioned in the lecture.

1. They require no beneficiaries and are enforced by the Charity Commission. 2. They are not subject to the perpetuity period. 3. They can be saved under the cy-près doctrine if they fail.

Which case provides the three cumulative criteria for determining if a trust is charitable?

Hanchett-Stanford v Attorney General [2008].

In the context of the prevention or relief of poverty (s2(2)(a)), how did Re Coulthurst [1951] define 'poverty'?

Poverty does not mean destitution; it means persons who have to 'go short' in the ordinary sense of that term.

How does section 2(3)(a) of the CA (NI) 2008 expand the definition of religion?

It includes belief in one or more god and religions that do not believe in a god.

What is the 'public benefit requirement' under the Charities Act (NI) 2013 amendment?

It means the requirement in section 2(1)(b) that a purpose must be for the public benefit to be a charitable purpose, and it is not to be presumed that a purpose is for the public benefit.

According to McGovern v Attorney-General [1982], what specific type of purposes are excluded from being charitable in NI?

Political purposes.

What is the principle of 'Severance' as established in Salusbury v Denton?

If trust purposes are not exclusively charitable, the funds can be divided so some go to the charity and the rest are held on resulting trust for the testator's estate.

What must the court find to apply property cy-près in cases of initial failure according to Re Wilson [1913]?

A 'paramount intention' or general charitable intention to benefit charity.

Does a subsequent failure (supervening impossibility) require a finding of general charitable intention to apply cy-près?

No, the court will direct a cy-près application whether or not a general charitable intention can be found (Re Dunwoodie [1977]).

Under section 29(3) of the Charities Act (NI) 2008, what three matters must the Court or Commission consider when making cy-près schemes?

(a) The spirit of the original gift, (b) the desirability of securing property is applied for purposes close to the original, and (c) the need for purposes suitable and effective in current social and economic circumstances.