Equity and Trust – Charitable Trust

In the case of Commissioner for Special Purposes of Income Tax v. Pensel, Lord MacNaughten divided this trust into four major headings;

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1. Trust for relief of property
2. Trust for the advancement of education
3. Trust for advancement of religion
4. Trust for other purposes beneficial to the community

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ELABORATION ON DIVISIONS OF CHARITABLE TRUST

1. For the relief of poverty:

This class is exempted from the public benefit test and was originally used to provide for the “aged, impotent and poor”.

2. For the advancement of education:

This focuses on the promotion of education for the general good

3. For the Advancement of religion:

This refers to the promotion of spiritual teaching and the maintenance of the doctrines on which it rests

4. For purposes beneficial to the community:

This focuses on all things not under the prior three and extends from trusts for sports and recreation to trusts for the welfare of animals