Purpose & charitable trusts
A private purpose trust for a non-charitable purpose is generally void. Charitable purpose trusts are valid and enjoy special advantages if they satisfy the Charities Act criteria.
What "Purpose & charitable trusts" covers
- The beneficiary principle: a trust must have ascertainable human beneficiaries who can enforce it (Morice v Bishop of Durham); a non-charitable purpose trust usually fails.
- Limited anomalous exceptions (trusts of imperfect obligation): maintenance of specific animals, tombs/monuments, and certain private purposes — Re Endacott — and these are not to be extended.
- A gift to an unincorporated association is usually construed as a gift to members subject to the contractual rules of the association (Re Recher's Will Trusts).
- Charities Act 2011 s.3 lists the recognised charitable purposes (e.g. prevention of poverty, advancement of education, religion, health); s.4 requires public benefit.
- A charitable trust must be exclusively charitable — mixed charitable and non-charitable purposes generally fail unless the non-charitable part is incidental.
- Public benefit must be shown; a personal nexus between beneficiaries (e.g. employees of one company) usually defeats it (Oppenheim v Tobacco Securities).
- Charitable trusts need not satisfy certainty of objects in the same way, may be perpetual, and failed gifts may be applied cy-près.
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For purpose & charitable trusts, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Assuming any worthwhile purpose is charitable — it must fall within a s.3 head and satisfy public benefit.
- Extending the anomalous purpose-trust exceptions beyond the established categories.
- Forgetting the exclusivity requirement where a trust mixes charitable and non-charitable objects.
Learn and practise this subtopic
A guided lesson and exam-style questions on purpose & charitable trusts.
FAQ
Is purpose & charitable trusts tested on SQE1?
Yes — purpose & charitable trusts is part of the SQE1 Trusts syllabus (FLK2) and can appear in single best answer questions.
How is purpose & charitable trusts examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (Morice v Bishop of Durham (1804), Re Endacott [1960]) helps.