Advise as to whether or not this would constitute a valid charitable trust.

Coursework Assignment

You are required to complete a written coursework assignment. The assignment has a maximum word limit of 1500 words and will take the form of answers to ONE question from the choice below.

You must answer ONLY ONE of the questions below. Students should not attempt to answer both.

 

Question 1

 

Rick Owens is the executor of the estate of Lady Alice Chattlery, who had amassed a substantial fortune in the Northern Irish cement industry.

Within the will, is a gift “to my poor and needy relatives, both those who I knew, and their children, and their children’s children.” This gift consisted of a £10,000 endowment for any such relative who could prove that they were suffering from sufficient hardship.

 

Advise Rick as to whether or not this would constitute a valid charitable trust..

 

[End of Question 1]

 

 

Question 2

 

Dickie Rock was appointed the trustee of his sister Jemima’s family holiday home upon her death. Included within the will, was that the holiday home was to be held on trust for Jemima’s two small children – Roger and Moorehouse – until they reached the age of 18. Dickie determined that it was safer to insure and to appoint a trusted caretaker to look after the property and not to rent it out on the open market, for fear that some damage might accrue to it if the tenants proved to be less than desirable. Although no profit was made, it also did not incur any costs, as the caretaker paid a small amount which covered the cost of the insurance, with the rest being offset in consideration of the occasional maintenance that he carried out on the property.

Upon reaching the age of 18, and realising that the property could have been rented for a significantly higher price, Roger and Moorehouse sued their uncle for failing to do more with a property for their benefit. They argued that a more competitive rent would have entitled them to at least £10,000 extra each upon the property vesting in them, and that Dickie failed in his duties as a trustee.

 

Advise Dickie.

[End of Question 2]