1
EQUITY AND TRUSTS
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Table of Contents
Introduction....................................................................................................................................3
2.1 Validity of Gifts in Sanjiv's Will.........................................................................................4
2.2 Trusts for Education of Children of Osteopaths Working for NHS in England...........5
2.3 Gift for Computers for Needy Students at Filton School.................................................5
2.4 Trust for Research into the Social and Economic Benefits of Re-Nationalising the
Railways......................................................................................................................................6
2.5 Gift to the West Midlands Osteopaths' Relief Fund.........................................................7
CONCLUSION..............................................................................................................................8
BIBLIOGRAPHY........................................................................................................................10
Articles......................................................................................................................................10
Books.........................................................................................................................................10
Cases..........................................................................................................................................11
Journals.....................................................................................................................................11
Website......................................................................................................................................11
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Equity & Trusts
Introduction
As per stipulations of Charities Act 2011, an establishment can only be deemed charitable
provided that it is instituted with singularly philanthropic motive, and operates exclusively for
the benefit of society at large.1 In order to secure charitable trust status, plethora of exigencies
must be satisfied with rigorous precision. It is mandatory for charitable trusts to procure official
registration with either Charity Commission in England and Wales or its cognate regulatory body
situated in Northern Ireland or Scotland.2 Moreover, estate planning, is a sophisticated process
that entails the fabrication of charitable trusts, is often chosen as an option for individuals
seeking to both bestow upon charities they hold dear and also reap advantageous tax benefits
posthumously.3
In his last will and testament, Sanjiv left sizable bequests to various charitable causes, including
the education of children of osteopaths working for the NHS, the provision of computers for
needy students at a registered charity, research into the social and economic benefits of re-
nationalising railways, and the West Midlands Osteopaths’ Relief Fund. However, questions
arise as to the validity of the gifts and how the appointed executors should allocate the funds,
particularly in light of the West Midlands Osteopaths’ Relief Fund ceasing to exist. This essay
will explore the legal requirements for establishing charitable trusts and offer professional
guidance for the executors in distributing Sanjiv’s generous contributions in accordance with his
philanthropic intentions.
Discussion
2.1 Validity of Gifts in Sanjiv's Will
Trustee Act 2000 and Charities Act 2011 both provide regulatory frameworks concerning
matters related to charitable gifts and administering trusts thereof.4
Regarding gifts, their validity cannot be determined by single factor; instead, numerous aspects
1
"Charities Act 2011: 2011 CHAPTER 25." Legislation.Gov.Uk.
https://www.legislation.gov.uk/ukpga/2011/25.
2
Hardy, Maryann L., Beverly Snaith, Lisa Edwards, John Baxter, Paul Millington, and Martine A. Harris.
"Advanced practice." (2021).
3
Sullivan, Ed, and Benjamin Braddock. "Common Grounds, Uncommon Lawyers." (2022).
4
Dernbach, John C. "The Role of Trust Law Principles in Defining Public Trust Duties for Natural Resources." U.
Mich. JL Reform 54 (2020): 77.
4
must be considered, such as individual's cognitive ability or intention and adherence to
formalities.5 An important aspect, in particular, is capacity which relates directly to person who
creates either will or trust; they should possess sufficient mental capacity for this task. 6 United
Kingdom has system for managing gifts and trusts, guided by different laws. 7 Wills Act of 1837
outlines requirements to ensure that wills are executed legally; one such requirement mandates
inclusion of two witnesses at signing.8
In addition to meeting legal requirements, charitable trusts such as one established by Sanjiv's
will must also satisfy public benefit requirement. This means that trust's objectives and activities
must be for benefit of the public or section of the public, as opposed to solely benefiting
individuals or private interests.
2.2 Trusts for Education of Children of Osteopaths Working for NHS in England
An agreement sanctioned by law in which an individual retains property for another is known as
trust.9 Concerning wills and inheritances, trusts are commonly utilised to cater for particular
goals or beneficiaries.10 Sanjiv has established a trust within his last testament that assists with
educating offspring belonging to osteopaths serving the NHS in England; he initiated it with
£500,000 worth of funds. This trust intends to offer assistance for educating offspring from
osteopaths working in NHS England.
The Charities Act regulates all aspects related to charitable trusts, including setting up such
entities and managing them while requiring anyone involved to register under a Charity
Commission providing regular reports and financial accounts.11 Human Dignity Trust v Charity
Commission CA/2013/0013 found that Trust's activities did indeed advance charitable purposes,
specifically in the area of the advancement of human rights.12
To conclude, Sanjiv's will contains a legitimate offering for educating NHS osteopaths' children
in England. Establishing and managing this trust must meet all legal requirements to be valid.
5
Abdullah, Mohammad. "Waqf and trust: the nature, structures and socio-economic impacts." Journal of Islamic
Accounting and Business Research 10, no. 4 (2019): 512-527.
6
Davies, P., & Virgo, G. (2016). Equity & Trusts: Text, Cases, and Materials (2nd ed., p. 1045). Oxford University
Press.
7
Watt, Gary . 2020. Trusts and Equity. Oxford University Press.
8
Crawford, Bridget J. "Wills Formalities in the Twenty-First Century." Wis. L. REv. (2019): 269.
9
Watt, Gary . 2020. Trusts and Equity. Oxford University Press.
10
Thorlby, Ruth, and S. Arora. "The English health care system." International profiles of health care systems
(2020): 59.
11
Breen, Oonagh B. "Regulating European Philanthropy: Lessons from the Scholarly Legacy of Evelyn Brody." In
Nonprofit Policy Forum, vol. 11, no. 3. De Gruyter, 2020.
12
The Human Dignity Trust v Charity Commission CA/2013/0013
5
Hence, by providing educational opportunities for these children, the trust is contributing to the
overall improvement of healthcare in England, which ultimately benefits the wider public.
2.3 Gift for Computers for Needy Students at Filton School
The gift of £25,000 in Sanjiv's will is intended to provide computers for needy students at Filton
School. This gift falls under charitable gifts, which are donations made to organisations
recognised as charities under UK law. Philanthropic gifts are subject to legal requirements for
validity, which are established in the Charities Act 2011.13
The National Council for Civil Liberties (NCCL) v. Charity Commission for England and Wales
(2016) argued that the NCCL's political activities were not sufficiently linked to its charitable
purposes and that its advocacy work did not promote public benefit.14 In Re Delius [1957] Ch
299, the court was asked to determine whether charitable trust established for purpose of
providing scholarships to students should be modified to allow for provision of loans instead.15
Court held that trust could be modified, as change would still further original charitable purpose
of providing financial support to students.
In Re Koeppler [1986] Ch 423, court considered whether charitable trust established for purpose
of providing education in specific field should be modified to allow for education in broader
range of subjects.16 In both cases, court used doctrine of advancement of education to allow for
changes to be made to original charitable trusts, so that they could better achieve their intended
charitable purposes. Hence, it satisfies the public benefit requirement and legal requirements for
validity under Charities Act 2011.
2.4 Trust for Research into the Social and Economic Benefits of Re-Nationalising the
Railways
Sanjiv's will includes trust with £350,000 gifted as an initial amount to research the social and
economic advantages of regaining government-owned transportation. Main aim is to finance
deep-dive studies into how re-nationalisation can benefit rail networks by giving ownership and
monitoring rights back to the authorities.17 In all fairness, they are also obliged to impartiality
13
Murray, Ian. "Charities & Discrimination: Is Charity Law Always a Better Solution than Public Policy?." In
Nonprofit Policy Forum, vol. 13, no. 2, pp. 141-159. De Gruyter, 2022.
14
National Council for Civil Liberties v. Charity Commission for England and Wales (2016)
15
Re Delius [1957] Ch 299
16
Re Koeppler [1986] Ch 423
6
without encountering any conflict concerning interest.18
There exist pertinent legal precedents in United Kingdom jurisprudential system that bolster
notion that delving into inquiries regarding social and economic advantages of reacquiring
ownership of railways qualifies as charitable purpose. Case in point is National Anti-Vivisection
Society v IRC [1948] AC 31, wherein the House of Lords decreed that promoting scientific
progress for public utility constitutes a charitable purpose. 19 Similarly, in IRC v McMullen
[1981] 1 WLR 592, it was enunciated that examining social quandaries such as prisoner
rehabilitation may be regarded as charitable purpose.20 Consequently, it can justifiably be
inferred that investigating the societal and fiscal positives emanating from renationalising rails
would likewise warrant classification as charitable purpose under extant UK law.
Hence, purported intent behind this endowment seems to be one that is philanthropic in nature.
According to United Kingdom law, charitable aims refer to "the mitigation of pauperism,
advancement of erudition, advocacy for spirituality or any other objectives cogent to community
well-being (Charities Act 2011, s 2(2)).
This imparted endowment harbours a conspicuously public objective, as its underlying impetus
strives to furnish social and economic advantages to the larger community through the
exploration of re-nationalization protocols for railways. In this context, research borne forth by
this particular trust is particularly targeted towards identifying whether re-nationalizing railway
infrastructure could potentially bestow socially enriching and financially augmentative benefits
upon ubiquitous citizens alike; thus harmoniously synergizing itself with righteous governing
principles underpinning philanthropic entities such as charitable trusts. In the case of Sanjiv's
trust, the research into the social and economic benefits of re-nationalizing the railways is aimed
at identifying potential advantages that could benefit society as a whole.
2.5 Gift to the West Midlands Osteopaths' Relief Fund
The giving of the present is intended to aid in maintaining the relief fund's objective, which is to
provide monetary support for osteopaths experiencing hardship within England's West Midlands
17
Alenezi, Mamdouh. "Deep dive into digital transformation in higher education institutions." Education
Sciences 11, no. 12 (2021): 770.
18
Saunders v Vautier (1841) Cr & Ph 240, 41 ER 482, Court of Chancery.
19
National Anti-Vivisection Society v IRC [1948] AC 31
20
IRC v McMullen [1981] AC 1
7
area. The beneficiaries of this offering are those who receive financial assistance from said fund,
and it rests upon the trustees' shoulders as their responsibility includes management over funds
disbursement decisions.21
For the bequest to be appropriately managed, Sanjiv's representatives must adhere to legal
guidelines detailed in the Charities Act 2011.22 This act oversees how charitable trusts are created
and administered while outlining specifications such as registration with Charity Commission
and corresponding reporting and accounting responsibilities.23
Despite this, the relief fund established by West Midlands Osteopaths did not survive beyond
January 2023. As a result of its dissolution, Sanjiv's generous contribution has come under
scrutiny regarding its legitimacy and management. Given these developments surrounding the
osteopath charity disbandment, executors handling Sanjiv's affairs may have to reallocate their
allocation to another charitable organisation with an overlapping vision for supporting
communities within that region. Conversely, they could also require consultations from other
experts in law or philanthropy such as Charity Commission personnel, before deciding on the
next steps.
The impartial criteria laid out in the Charities Act 2011 that survey and regulate the formulation
and execution of charitable trusts serve as guidelines for appropriately maintaining donations
given exclusively for benevolent causes. A multitude of pertinent cases recorded under UK law
present supportive evidence towards this cause; notably, Re Scarisbrick cas puts forth the
condition that any established charitable trust must endorse virtuous motives.24
The primary objective behind the presentation of this gift is one that fulfils a charitable purpose.
Indeed, it aims to lend aid in establishing and upholding relief funds targeted towards osteopaths
undergoing adversity within the West Midlands vicinity. By extension, there exists an altruistic
motive behind this gift as it is geared towards provisions of financial backing to those less
fortunate struggling with harrowing circumstances in particular communities within West
Midlands.
The Preamble to the Charitable Uses Act 1601 states that the Act was passed to prevent abuses in
charitable trusts and to ensure that the charitable gifts are used for the benefit of the intended
21
Nestlé v National Westminster Bank Plc [1993] 1 WLR 1260, Court of Appeal.
22
Syrett, Keith, and John Alder. Constitutional and administrative law. Bloomsbury Publishing, 2021.
23
Jing, Hui. "Enforcing charitable trusts: a study on the English necessary interest rule." Legal Studies 42,
no. 2 (2022): 228-245.
24
Re Scarisbrick [1951] Ch 622
8
beneficiaries.25 This relates to the Cypres rule, which allows the court to apply charitable gifts to
purposes as close as possible to the original charitable purpose, where the original purpose has
failed or become impossible to fulfill. In this situation, the Cypres rule could come into play if
any of the charitable gifts fail. The Cypres rule allows the court to intervene and redirect the
charitable gift to a similar charity or charitable purpose if the original gift fails or becomes
impossible to carry out.26
In the case of Sanjiv's will, the gift to the West Midlands Osteopaths’ Relief Fund has failed
since it no longer exists. The Cypres rule could be used to redirect this gift to a similar charity
that supports the advancement of poor osteopaths in the West Midlands.
In the case of the West Midlands Osteopaths' Relief Fund, the charitable purpose is to provide
financial assistance to osteopaths experiencing hardship in the West Midlands area, which could
be seen as benefiting the public by ensuring the continuity of healthcare provision in the region.
CONCLUSION
In conclusion, Sanjiv's will contains provisions for four different trusts and gifts, each with their
own intended purpose and legal requirements for validity and management. The trust for the
education of children of osteopaths working for the NHS in England must adhere to the Trustee
Act 2000 and Charities Act 2011 to ensure its proper establishment and management. The gift
for computers for needy students at Filton School satisfies the legal requirements for validity
under the Charities Act 2011, but the distribution of funds and selection of beneficiaries must be
carefully managed to ensure they align with the terms of the gift. Finally, the trust for research
into the social and economic benefits of re-nationalising the railways is a legitimate provision in
Sanjiv's will as long as it adheres to all legal rules for its establishment and management. Sanjiv's
gift was intended to provide monetary support for osteopaths experiencing hardship in the West
Midlands area through the relief fund, which must be managed in adherence to legal guidelines.
Since the fund dissolved, Sanjiv's executors may have to reallocate the gift to another charitable
organisation or seek consultations before deciding on the next steps. Overall, the proper
establishment and management of these trusts and gifts are crucial to ensure that they effectively
achieve their intended purposes and avoid legal complications.
25
Preamble to the Charitable Uses Act 1601
26
Fredman, Sandra. Discrimination law. Oxford University Press, 2023.
9
BIBLIOGRAPHY
Articles
● Breen, Oonagh B. "Regulating European Philanthropy: Lessons from the
Scholarly Legacy of Evelyn Brody." In Nonprofit Policy Forum, vol. 11, no. 3.
De Gruyter, 2020.
10
Books
● Alenezi, Mamdouh. "Deep dive into digital transformation in higher education
institutions." Education Sciences 11, no. 12 (2021): 770.
● Crawford, Bridget J. "Wills Formalities in the Twenty-First Century." Wis. L.
REv. (2019): 269.
● Dernbach, John C. "The Role of Trust Law Principles in Defining Public Trust
Duties for Natural Resources." U. Mich. JL Reform 54 (2020): 77.
● Davies, P, and G Virgo. 2016. Equity & Trusts: Text, Cases, and Materials. 2nd
ed. Oxford University Press.
● Fredman, Sandra. Discrimination law. Oxford University Press, 2023.
● Hardy, Maryann L., Beverly Snaith, Lisa Edwards, John Baxter, Paul Millington,
and Martine A. Harris. "Advanced practice." (2021).
● Murray, Ian. "Charities & Discrimination: Is Charity Law Always a Better
Solution than Public Policy?." In Nonprofit Policy Forum, vol. 13, no. 2, pp. 141-
159. De Gruyter, 2022.
● Sullivan, Ed, and Benjamin Braddock. "Common Grounds, Uncommon
Lawyers." (2022).
● Thorlby, Ruth, and S. Arora. "The English health care system." International
profiles of health care systems (2020): 59.
● Virgo, Graham . 2018. The Principles of Equity & Trusts 3rd Edition. 3rd ed.
Oxford University Press.
● Watt, Gary . 2020. Trusts and Equity. Oxford University Press.
11
Cases
● National Anti-Vivisection Society v IRC [1948] AC 31
● National Council for Civil Liberties v. Charity Commission for England and
Wales (2016)
● Preamble to the Charitable Uses Act 1601
● Re Delius [1957] Ch 299
● Re Koeppler [1986] Ch 423
● Re Scarisbrick [1951] Ch 622
● The Human Dignity Trust v Charity Commission CA/2013/0013
Journals
● Abdullah, Mohammad. "Waqf and trust: the nature, structures and socio-
economic impacts." Journal of Islamic Accounting and Business Research 10, no.
4 (2019): 512-527.
● Russell, Jenny. "CUSTODIAL DUTIES IN THE COURT OF APPEAL." The
Cambridge Law Journal 81, no. 3 (2022): 474-477.
Website
● "Charities Act 2011: 2011 CHAPTER 25." Legislation.Gov.Uk.
https://www.legislation.gov.uk/ukpga/2011/25.
