Are there different requirements for a charitable trust?
While the beneficiary of a private trust can be anyone, the beneficiaries of a charitable trust must be some charitable class. For example, a charitable trust may be established to contribute money to the underprivileged. The class of beneficiaries must be large enough that the benefit of the trust can be seen as going to the public, rather than just some specific collection of individuals. Thus, the class of charitable beneficiaries is often described very broadly, such as the above example referencing “the underprivileged.”