Two Types of Trusts Essay

2789 Words 12 Pages
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. …show more content…
The courts have adopted the practice of referring to the Preamble for guidance as to what purposes should be regarded as charitable in law. Tudor advocates; “the preamble is still undoubtedly the accepted test, though only in a very wide and broad sense, whether a particular purpose is charitable, and the court in discharging the duty of determining what objects are and what are not charitable must have the preamble in mind”[1]. Also the courts and the Charity Commissioners under s. 4 of the Charities ACT 1960 have built up a large number of case law. This is why Warburton argues that " often it ( case law) may appear illogical and capricious. It could hardly be otherwise when its guiding principle is so vaguely stated and is liable to be so differently interpreted in different ages." This exhibits why the preamble is not seen as exhaustive, as new objects may obtain charitable status as society evolves.

Lord Macnaghten made the most influential classification of charitable purposes in Pemsel's case. He divided the charitable purposes into four groups.

1) Trusts for the relief of poverty

2) Trusts for the advancement of religion

3) Trusts for the advancement of

Related Documents