Variation of Trusts Act 1994 (Tas)

Variation of Trusts Act 1994

An Act to provide for the variation of charitable and private trusts [Royal Assent 25 August 1994]

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART 1 - Preliminary

1. Short title This Act may be cited as the Variation of Trusts Act 1994 .

2. Commencement This Act commences on a day to be proclaimed.

3. Interpretation In this Act, Court means the Supreme Court of Tasmania.

PART 2 - Charitable Trusts

4. Effect of certain gifts and trusts (1) A gift of property to provide opportunities or facilities for sport, recreation or other activities associated with leisure is taken to be, and to have always been, a gift for charitable purposes. (2) A charitable trust is not invalid by reason only that a non-charitable purpose is, or could be taken to be, included in any of the purposes to, or for which, an application of any of the trust funds is directed or allowed by the trust. (3) A trust of a type referred to in subsection (2) is to be construed and has effect as if no application of any of the trust funds to or for any such non-charitable purpose were directed or allowed by the trust.

5. Application for variation of trust (1) In this section – original purposes, in relation to a charitable trust, means the purposes for which the property of the trust is being required, or permitted, to be applied, regardless of whether those purposes of the trust have been varied or regulated previously. (2) If it has become impossible, impracticable or inexpedient to carry out the original purposes of a trust for charitable purposes in whole or in part, an application may be made for a variation of those purposes by a scheme approved under this Part. (3) Without limiting the generality of subsection (2) , an application for a variation of trust may be made in the following circumstances: (a) if the original purposes, in whole or in part – (i) have been as far as possible fulfilled; or (ii) cannot be carried out, either at all or according to the directions given or to the spirit of the gift; (b) if the original purposes provide a use for a part only of the trust property; (c) if the trust property could be used more effectively if combined with other property applicable for similar purposes and administered jointly with that property; (d) if it is not reasonably practicable to apply the trust property in accordance with the original purposes having regard to – (i) the value of the trust property; or (ii) changes in circumstances; or (iii) any other relevant factor; (e) if the original purposes, in whole or in part – (i) have been adequately provided for by other means; or (ii) have ceased to be charitable purposes; or (iii) have ceased to provide a suitable and effective method of using the trust property. (4) This section does not affect the requirement for a general charitable intention in any case where such an intention is a condition before the purposes of a charitable trust may be varied.