Charitable Trusts - Exclusively Charitable

3 important questions on Charitable Trusts - Exclusively Charitable

Chichester Diocesan Fund and Board of Finance Incorporated v Simpson [1944]

Caleb Diplock, in his will, directed his executors to apply the residue of his estate for such charitable institutions 'or benevolent object or objects' as the executors in their absolute discretion should select.

Held: The gift was void because the executors could choose benevolent objects that extended beyond what the law recognised as charitable, and it was impossible to interpret the clause so that 'or' meant 'and'.

Funnell v Stewart [1996]

Private worship was held to be ancillary to the charitable purpose of faith healing because it assisted in the advancement of that purpose.

Charitable Trusts (Validation) Act 1954, section 1(a) and (b)

This Act was enacted to provide that any charitable trust created before 16 December 1952 that was invalid because the fund could be used for non-charitable purposes should be treated as though all of the objects were charitable.

Since this Act had only retrospective effect, it does not affect the general principle relating to modern trusts needing to have exclusively charitable purposes.

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