A purposeful trust is a trust established to accomplish a certain purpose or objective. It is a by law trust and used mostly in places like the Virgin Islands and Bermuda. Courts in these types of commonwealth jurisdictions, as well as the Isle of Man, design purposeful trusts, or purpose trusts, to bring about a desired outcome.

The objectives of a purposeful trust are clear and distinct and do not have specific beneficiaries since they function to achieve a particular purpose. In English law, the charitable trust is a type of purpose trust and exists to establish a charity. A purpose trust requires an enforcer, since there are no trustees or beneficiaries, to carry out the terms of the trust. Use a purposeful trust to:

1. Set up a corporation in a commonwealth jurisdiction.

2. Maintain or set up a not for profit charity such as museums or other types of preservation organizations.

3. Invest in a private trust organization through a purposeful trust.

Action Steps
The best contacts and resources to help you get it done

Get purposeful trust information from purposeful trust experts

Purposeful trusts function to protect assets for a specific time, establish ongoing non-profit organizations or for other very specific purposes. Because they aren't a popular estate planning tool in the US, getting the right information about their use from experts in trust planning is important. Get more information from an estate planning attorney in your area to see if your situation requires a purpose trust.

I recommend: Visit Attorneypages.com and select your state to find a purposeful trust expert near you. You can also visit AVVO, type in your state or zip code and then type "Trusts and Estates" for the Legal Topic to find a purposeful trust expert in your area.

Read cases about a purposeful trust to understand more

There are case examples where individuals have a purposeful trust. Doing your homework ahead of time helps a purposeful trust expert determine if a purposeful trust is right for your situation.

I recommend: Visit LexisOne or The RJ&L Religious Liberty Archive for information and cases involving purposeful trusts.

Work with a trust attorney for the right purposeful trust advice

During challenging moments, getting the right answers before you need them is priceless. Purposeful trusts can be confusing, so choosing a qualified trust and estate attorney takes the worry out of making the right decisions for your particular situation.

I recommend: Alexanders, Barristers & Attorneys of Bermuda and Conyers Dill & Pearman of the British Virgin Islands law firms with estate planning and trust divisions and are experts in purpose trust planning and management.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Purposeful trust management is a complex process requiring the help of a purposeful trust expert to create purposeful trust documents. Since this area of trust planning is so specific, there are no online sources for the creation of a purposeful trust on your own.