Equity and Trusts Exam Revision – Answer Structure + Key Cases for Charitable
Trusts
Charitable Trusts: Problem Question Structure -
Introduce the topic area and signpost your answer
For a trust to be successfully charitable, it must meet the following requirements
(deal with each one in order):
1) Is the purpose charitable in nature? The purpose must come under one of the
heads of charitable purpose as listed in the Charities Act 2011 s3(1). Examples:
Advancement of Education, Animal Welfare, Relief of Poverty are all charitable
purposes.
You can also discuss the development of the charities act/legislation and how it has
changed from the Charitable Uses Act 1601, Pemsel's Case (1891), to the Charities
Act 2006 etc. You should then apply the relevant cases to support your answer
depending on the particular head of charitable purpose that comes up in the exam.
2) Does the purpose benefit the public? Apply Charities Act 2011 (s2(1)(b) & cases
as to what they have to say in relation to the 'purpose' benefitting the public – public
benefit test. Charity Commission guidance is also very useful to talk about.
3) Does the purpose have any political aims/messages/motives? If yes, they cannot
be charitable and the purpose will fail at this stage and not be a trust. Apply cases which
support the failure of political changes.
4) Is trust exclusively charitable? It must only be for charitable reasons and nothing
else. 5) Finally, if relevant explain, apply and distinguish the Cy-pres Doctrine:
Initial Failure OR Subsequent Failure? - Conclude Answer for Scenario.
For each charitable requirement do the following:
State the legal principle
Explain the reasons or basis for that principle
Give Authority (case law)
Apply the case to the facts
Conclude (i.e. have the charitable requirements been met successfully to
create a charitable trust?)
Evaluate where relevant (compare case judgments and why judges arrived
at that particular decision, has a more recent case set a precedent to
follow? Is the law changing in that area?)
Trusts
Charitable Trusts: Problem Question Structure -
Introduce the topic area and signpost your answer
For a trust to be successfully charitable, it must meet the following requirements
(deal with each one in order):
1) Is the purpose charitable in nature? The purpose must come under one of the
heads of charitable purpose as listed in the Charities Act 2011 s3(1). Examples:
Advancement of Education, Animal Welfare, Relief of Poverty are all charitable
purposes.
You can also discuss the development of the charities act/legislation and how it has
changed from the Charitable Uses Act 1601, Pemsel's Case (1891), to the Charities
Act 2006 etc. You should then apply the relevant cases to support your answer
depending on the particular head of charitable purpose that comes up in the exam.
2) Does the purpose benefit the public? Apply Charities Act 2011 (s2(1)(b) & cases
as to what they have to say in relation to the 'purpose' benefitting the public – public
benefit test. Charity Commission guidance is also very useful to talk about.
3) Does the purpose have any political aims/messages/motives? If yes, they cannot
be charitable and the purpose will fail at this stage and not be a trust. Apply cases which
support the failure of political changes.
4) Is trust exclusively charitable? It must only be for charitable reasons and nothing
else. 5) Finally, if relevant explain, apply and distinguish the Cy-pres Doctrine:
Initial Failure OR Subsequent Failure? - Conclude Answer for Scenario.
For each charitable requirement do the following:
State the legal principle
Explain the reasons or basis for that principle
Give Authority (case law)
Apply the case to the facts
Conclude (i.e. have the charitable requirements been met successfully to
create a charitable trust?)
Evaluate where relevant (compare case judgments and why judges arrived
at that particular decision, has a more recent case set a precedent to
follow? Is the law changing in that area?)
