Purchase a course multi-pack for yourself or a friend and save up to 50%!
5-COURSE MULTI-PACK $180
10-COURSE MULTI-PACK $300
Accelerated 1-year bachelor's program
Question 1
Joseph established a trust "to educate the children of the victims of the World Trade Center attack" This is an example of:
Correct
Incorrect!
Correct A large number or indefiniteness of direct recipients is not essential to a charitable trust. Here, this trust would qualify as charitable even though the number of potential recipients is limited. Furthermore, this trust would free universities and government programs from having to provide aid to these students, thereby making aid available to others in need.
Incorrect! A large number or indefiniteness of direct recipients is not essential to a charitable trust. Here, this trust would qualify as charitable even though the number of potential recipients is limited. Furthermore, this trust would free universities and government programs from having to provide aid to these students, thereby making aid available to others in need.
Correct
Incorrect!
Question 2
Ryan established a trust "to educate either my son and daughter or the university they attend." This is an example of
Correct If a trust has both charitable and noncharitable purposes the trust does not qualify as a charitable trust. Here, Ryan established a trust to benefit noncharitable beneficiaries (his children) and a charitable non-profit organization (a college). A mixed use trust fails as a charitable trust and its validity must be evaluated based on private trust standards.
Incorrect! If a trust has both charitable and noncharitable purposes the trust does not qualify as a charitable trust. Here, Ryan established a trust to benefit noncharitable beneficiaries (his children) and a charitable non-profit organization (a college). A mixed use trust fails as a charitable trust and its validity must be evaluated based on private trust standards.