Solicitors Qualifying Examination (SQE) Practice Exa\

Charitable purposes are indeed exempt from the rule against inalienability of trust capital. This means that trusts established for charitable purposes can have their capital distributed or used for the charitable objectives directly, without being bound by the same restrictions that apply to private trusts.

This exemption is rooted in the public benefit principle, which emphasizes that charitable organizations are designed to benefit society at large. As a result, the law allows a more flexible approach to the management and distribution of trust capital when it is dedicated to charitable aims. This flexibility aims to enhance the effectiveness of charitable activities and ensure that resources can be deployed in ways that best serve the community or the intended beneficiaries of the charity.

In contrast, trust capital related to private trusts generally cannot be alienated, meaning it cannot be sold or transferred from the trust, thus ensuring that beneficiaries retain an equitable interest in the assets. Charitable trusts, however, are structured with the notion that their purpose is to achieve societal benefits, allowing for greater adaptability in handling the trust capital.