NAME: NKEMJIKA DELIGHT PERFECTA
MATRIC NUMBER: 18/SMS13/011
COURSE TITTLE: EQUITY AND TRUST
{SPECIFICALLY, TRUST}
LECTURER: MRS PRECIOUS
DATE{of submission}: 25th April, 2022
ASSIGNMENT:
Read on the case of Christ Hospital v. Grainger {1849} 1 MAC G460,
discussing it as it relates to charitable trust.
WHAT IS CHARITABLE TRUST?
Charitable trust, also known as ‘Public trust’, is a trust created for the benefit of the
public, even though specific individuals could benefit from it, it’s a trust created
ultimately for the public.
The case of Christ Hospital v. Grainger,
The corporation of London, as governors of Christ Hospital claimed certain
property which had been left by the testator to the corporation of Reading for
certain charitable purposes with a direction that if the donee should for a year
neglect, omit or fail to perform the directions of his will, the gift will be utterly
void and should forthwith be paid and transferred to the Corporation of London for
the benefit of Christ’s Hospital.
The donee charity, having failed to perform the directive in the will of the testator,
the court held the gift void and the gift over to the Christ Hospital London took
effect even though outside the Perpetuity Period.
What is perpetuity period Or Rules Relating to Perpetuity?
Perpetuity period applies to future interests in assets {i.e} interests that do not take-
effect immediately.1
Perpetuity Period is the length of life or lives in being plus Twenty-One years. {a
life in being means a life in existence at the time of the disposition}. Property must
vest within the perpetuity period. The capital of a private trust may not be rendered
inalienable for longer than the perpetuity period.2
Any attempt to create a trust and to apply the income of that trust to some private
purpose in perpetuity will fail.
1
THOMPSON REUTERS PRACTICAL LAW: GLOSSARY PERPETUITY
PERIOD>https://uk.practicallaw.thomsonreuters.com> accessed 23rd april 2022, @12:07pm.
2
J.O Fabunmi, Equity and Trust: on “THE RUES RELATING TO PERPETUITY” @ page 266, accessed on 21 st april, 2022
@12:00pm
But, if the purpose of a trust is charitable the property of that trust can be rendered
Perpetually Inalienable.
THE CASE AS IT RELATES TO CHARITABLE TRUST
This writer affirms in the positive that the case afore mentioned does relate to
Charitable trust.
For a Trust to fall under the ambiance or doctrine of being Charitable, it must
fulfill certain requirements, :
It must be for the relief of poverty
It must be for the advancement of education
It has to be for the advancement of religion
The trust would definitely be for the benefit of the community{public}.
It is also to be mentioned that, relating to the rule against perpetuity {exception}: if
there’s a gift from one charity to another, the gift’s not void just because it doesn’t
take effect within the perpetuity period.
The rule of Christ Hospital v. Grainger is a perfect example to that exception.
And it’s more than often used by testators who wants to provide for the
maintenance of their tombs in perpetuity.
Drawing back to the case in scenario, it is not to be forgotten that it is sorely at the
discretion of the court to determine whether a trust is charitable or not, with the
Attorney-General who enforces it, these requirements must also be satisfied. So if
all requirements are fulfilled it is to be assumed that it does fall under Charitable
Trust.
The testator in his trust emphasized : “the benefit of Corporation of Reading, …or
transferred to the Corporation of London for the benefit of Christ’s Hospital”.
It can be deduced that this is trust created for the general public, even though
individuals can and will benefit from it.
As was stipulated in the case of Fatunmola v. Ogundimu {1979}:
Where it was held to qualify as charitable trust, the most important element, is that
“it must be for the benefit of the public”. The trust is thus said to be charitable.
