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451Trusts & Trustees, Vol. 18, No. 6, July 2012, pp. 451462Editorial Purposeful trusts and foundations? Johanna Niegel*Welcome to Private Foundations 2012, which is already in its eighth year!.

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A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non-charitable purpose of some kind.

Where the objects of a trust are a purpose rather than an individual or individuals, there is much greater risk that a trust would not be enforceable due to lack of certainty.

A purpose trust is designed with a primary objective in mind and how it operates is based on that objective. So, for example, if you were to set up a trust for the maintenance of your burial plot after you pass away, the assets in the trust would be exclusively used for that purpose.

A purpose trust without a human beneficiary would be too uncertain to permit enforcement. It would also tie up property for prolonged periods of time. For these reasons, such trusts are against public policy.

KEY FEATURES OF A PURPOSE TRUST Valid purpose must be stated in the terms of the trust. The purpose must be consistent with public policy and must be reasonable and attainable. Must appoint trustee(s). Required to have an enforcer whose duty is to enforce the trust in relation to its stated purposes.

First, a purpose is not charitable unless it actually benefits the public generally. For example, a trust may appear to be for the advancement of education, but actually provides only for the education of the settlor's relatives, i.e., it benefits only private individuals. Such a trust will not be charitable.

The purpose of a Purpose Trust is to increase the flexibility of the traditional trust by sidestepping the “beneficiary principle”, that is, the requirement under English common law that a trust have an identifiable beneficiary who can enforce the terms of the trust and hold the trustee to account.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232