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Simple English definitions for legal terms
charitable trust
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A quick definition of charitable trust:
A charitable trust is a special type of trust that is created to help people in need. The trust must have a specific purpose that falls into one of the categories allowed by the law. Unlike other trusts, a charitable trust does not have to have specific people who will benefit from it. Instead, the attorney general is responsible for making sure the trust is used for its intended purpose. Charitable trusts are a good way to help others and are protected by the law.
A more thorough explanation:
A charitable trust is a type of trust that is created for the purpose of benefiting specific charitable causes. In order for a trust to be considered charitable, it must fall into one of the specific purpose categories outlined by the law. Charitable trusts are highly favored by the legal system, as they do not require definite beneficiaries and are not subject to the rule against perpetuities.
One example of a charitable trust is a trust that is created to provide funding for medical research. The trust would be managed by a trustee, who would be responsible for ensuring that the funds are used in accordance with the terms of the trust. The beneficiaries of the trust would be the medical researchers who receive the funding, as well as the individuals who benefit from the research.
Another example of a charitable trust is a trust that is created to provide funding for education. The trust could be used to provide scholarships to students who are pursuing higher education, or to fund research and development in the field of education.
These examples illustrate how charitable trusts can be used to benefit specific charitable causes, without the need for definite beneficiaries. The attorney general is responsible for enforcing the terms of the trust, ensuring that the funds are used in accordance with the charitable purpose of the trust.