Deck 12: Charitable Trusts

Question 1

Which of the following purposes are likely to be considered charitable (more than one applies)?

A) The provision of training for building trades.
B) Supporting the performance of Mystery Plays (plays dating from medieval times portraying bible stories).
C) Promoting healthy eating.
D) Promoting the use of coal for domestic heating.

Answer 1

A , B , C

Question 2

Which of the following would be least likely to be considered a charitable purpose under the Charities Act 2011 section 3?

A) A trust to provide educational grants to students who may wish to qualify as doctors.
B) A trust to provide holidays for unemployed persons in the community of Malvern.
C) A trust to establish a memorial garden in Kensington in memory of those who died in the Grenfell Tower disaster.
D) A trust to create a Community Amateur Sports Club in Liverpool.

Answer 2

B

Question 3

Your uncle Bertram is considering making a will leaving his residuary estate (worth several million pounds) to good causes to be chosen by his executors. He hates lawyers and is not prepared to take professional advice, but he has asked for your opinion about the wording of his gift. He is aware that there are inheritance tax advantages which make it advantageous to make the gift charitable.
Advise Bertram as to the most advisable form of words:

A) 'I leave my residuary estate to be distributed to such good causes as my executors shall choose.'
B) 'I leave my residuary estate to be distributed to such good and charitable causes as my executors shall choose.'
C) 'I leave my residuary estate to be distributed to such good charitable causes as my executors shall choose.'
D) 'I leave my residuary estate to be distributed to such good or worthy and charitable causes as my executors shall choose.'

Answer 3

C

Question 4

Which of the following most correctly represent the concept of poverty as it is used in charity law?

A) A person lives in poverty if they are living on less than 60% of the national median income.
B) A person is poor if they have insufficient means to provide basic requirements such as shelter, heating, clothing, and food.
C) Poverty is when your resources are well below your minimum needs.
D) Poverty means 'going short' even if you are better off than many others.

Question 5

Which of the following activities would not be considered to be for the advancement of education?

A) Providing private tutors for members of the British royal family.
B) Funding research into biodegradable plastic to be published in open source formats.
C) Conducting research into batteries for electric cars by Dyson Ltd.
D) Funding night classes open to the general public to teach the languages used in the Star Wars films.

Question 6

Which one or more of the following would not be considered to be for the advancement of religion?

A) A trust to revive all aspects of ancient Aztec religion, including human sacrifice.
B) A trust to promote Jediism, a belief system portrayed in the Star Wars films.
C) A gift to be shared equally amongst those who attended a Christmas Day service on 25 December 2017 at St Martin's Parish Church, Priestfield, Co. Durham.
D) A trust to enable individuals who have been diagnosed with a terminal illness to visit a Christian shrine of their choice.

Question 7

Which of the following gifts in a will would be considered charitable?

A) A gift to campaign for the abolition of abortion.
B) A gift to publish the manifesto of the Socialist Workers Party at the next general election.
C) A gift to provide books for residents of The Bishop's Avenue in London (a street which is considered to be one of the wealthiest streets in the world).
D) A gift to pay the university fees of the testator's poor relatives.