Our highly experienced team can assist, administer and offer support on purpose trusts
We would create purpose trusts for the fulfilment of specific purposes and not for the benefit of a person.
These are normally considered invalid by the courts because they have no legally recognised beneficiaries, therefore nobody to enforce the purpose trusts, with the exception of charitable trusts, which are enforceable by the Attorney General’s Office, as they represent the interests of the public.
As well as charitable trusts, there are several exceptions to the rules against purpose trusts. If the requirement to fulfil a purpose is a request, rather than an obligation, the trust is valid; a trust will also be found valid if, while being for a purpose, it involves beneficiaries in some respect. Purpose trusts can also be valid if they are for the erection or maintenance of tombs and memorials (assuming such memorials are not overly grandiose), the maintenance of animals, and arguably the saying of masses, although these must all obey the rule against perpetuities and not continue for more than 21 years after the testator’s death.
Purpose Trusts | What are they for?
Ultimately, a purpose trust (if permissible at law) may be a useful way for a settlor to distribute their assets in accordance with their wishes. We would always advise our clients to seek appropriate professional advice by speaking with one of our advocates, and a settlor should also consider whether their wishes can be achieved through the use of a private trust.
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If you need to talk to someone about Purpose Trusts, then take the first step and email email@example.com or call us on 01624 639350 to arrange your free initial consultation with us today at our office, over the telephone or via video call.