Trusts Problem Question

Abstract

There are various ways of dealing with this group of people, in order to ensure they receive what they are entitled under the will. Firstly, HH has mentioned charitable status, and one needs to first explore whether ‘Children of Paradise' can fit under the rules governing charitable status. If Children of Paradise can gain charitable status, it would make it much easier for them to stay on the land for various reasons; charitable trusts ignore the beneficiary principle, meaning that there is no need to have certainty of objects, which could have caused a problem in this case (the ‘fringe group of 20 who come and go'). Further to this, they also ignore the perpetuities rule, meaning that traditionally property cannot be tied up for longer than 2 generations. This could have proved a problem if the group continued on in the future. Therefore, it is clear that gaining charitable status is the most favourable option.

Charities have to be for the public benefit – this is the underlying principle from the 1601 Charities Uses Act, however there is no strict definition of what a charity can be - it has been said that; ‘there is no limit to the number and ways in which man will seek to benefit his fellow men'.