Two Types of Trusts

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...

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...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