Equity and trust law Essay Example | Topics and Well Written Essays - 3000 words

Equity and trust law - Essay Example eform proposals are in the process of being finalized into legislation, it has been the relevant case law which has served as a guide in order to determine whether or not an organization can qualify for charitable status. The case of Commissioners for Special Purposes v Pemsel2 laid out four categories that would automatically qualify an organization to receive charitable status, which are (a) advancement of religion (b) advancement of education (b) advancement of religion (c) relief of poverty and (d) other purposes beneficial to the community. The Charities Bill of 19933 also has the provision whereby, when a charitable trust fails due to difficulties in literal compliance with the intention of a testator, the doctrine of CyPress can be applied as a flexible policy option to prevent a trust resulting to its donors or the crown. Applying the Pemsel qualification, New Dawn must qualify under the category of advancement of religion, Democracy under the category of advancement of educa tion and Medi Aid under the category of other purposes beneficial to the Community. Ans 1: One of the criteria for determining whether or not a trust could be deemed to be charitable would depend upon whether it can be described as a valid purpose trust. In the case of Re Lipinski4 Oliver J draws a distinction in a testamentary disposition, between a purpose which is invalid (excluding tombs, animals and monuments cases), and a ‘people trust’ which is valid. Another case that highlights the question of purpose is A.G. of the Caymen Islands v Wahr Hansen5 . In this case, the Privy Council rejected the formulation of charitable trusts on the basis of a general purpose, since a general purpose demonstrates an intention that is wider than that which will benefit objects that are strictly charitable. In the case of Chicester Diocesan Fund v Simpson6, a similar application of a broad purpose had been examined, where a distinction was made between a gift that was â€Å"benevolent† and