Analysis
By his will dated 16 April 2002, the late Sir Edward Heath settled his home and contents, Arundells at Salisbury, upon charitable trusts. The trustees had power to apply income and capital to or for the benefit of one or more of six charitable objects, but no express power of sale save in furtherance of the charitable objects. In the years since the will was proved on 18 January 2006, annual deficits had been incurred by the trustees on opening Arundells to the public and, even after the sale of Sir Edward Heath’s papers, the balance available after eliminating the overdraft could only keep Arundells open until 2013. There were concerns about the repair costs to the building, including the need to repair the boiler, window frames and floor coverings. It was unlikely that funding for maintenance alone would be forthcoming from the Heritage Lottery Fund. The trustees applied for a scheme on the basis that a cy-près occasion had arisen under s13 of the Charities Act 1993 and the Charity Commission produced a draft that provided for a power of sale of Arundells and the disposal of the contents. However, on giving public notice of its intention to make the scheme, a considerable number of objections were received by the Charity Commission. As a consequence, the executor director of charity services was appointed to review the representations and draft scheme in accordance with the Charity Commission’s decision to review procedures.
Held (refusing to make the scheme)
The reviewer was not satisfied that a cy-près case had been made out, either on the basis that the original purposes, in whole or in part, could not be carried out, or not according to the directions given and to the spirit of the gift or, applying the lesser test, had ceased in any other way to provide a suitable and effective method of using the property available by virtue of the gift, regard being had to the appropriate considerations. When looking at the spirit of the gift, it was clear that four out of six of the charitable objects related specifically to Arundells, which was a house of genuine historic and architectural merit containing works of art and decorative features. The reviewer considered that Arundells was an essential and integral part of the charity’s purposes and, therefore, it was necessary to consider whether all methods of generating funds had been adequately explored and rejected, or properly tried and proved unsuccessful. Having regard to the impact of sale on the charity’s ability to carry out its purposes and his finding that alternative ways of generating income should be explored, the reviewer concluded that a power to sale would not be expedient in the interests of the charity. The trustees were advised to consider a number of fund raising recommendations, though with liberty to make a new application for a scheme at a future date.
JUDGMENT Introduction [1] The Sir Edward Heath Charitable Trust was created by Sir Edward Heath in his will of 16 April 2002. The will was proved on 18 January 2006. The trusts of the charity were amended by deeds dated 6 February 2006 and 18 February 2010 and by a scheme of 17 May 2010. …Continue reading "Re The Sir Edward Heath charitable trust"