A purpose trust is a kind of trust which has no beneficiaries, but instead exists for advancing some non-charitable purpose of some kind. They are of limited application owing to the courts being cautious to validate a trust it cannot enforce, they have however been fully integrated into other commonwealth jurisdictions by statute including Bermuda. This article or section does not cite its references or sources. ... In trust law, a beneficiary or cestui que use, is the person or persons who are entitled to the benefit of any trust arrangement. ... A charitable trust (or charity) is a trust organized to serve private or public charitable purposes. ... A statute is a formal, written law of a country or state, written and enacted by its legislative authority, perhaps to then be ratified by the highest executive in the government, and finally published. ...
They are usually used as part of commercial structures, where the purpose may be to hold shares in a particular company, or to be the ultimate owner of a private trust company. A trust company has been referred to as a near-bank; while technically it differs from a bank in mandate and services offered, it also provides banking services such as chequing accounts, savings and loans, investments and credit cards. ...
Trusts for charitable purposes are also technically purpose trusts, but they are usually referred to simply as charitable trusts. People referring to purpose trusts normally are referring to non-charitable purpose trusts. A charitable trust (or charity) is a trust organized to serve private or public charitable purposes. ...
Historically, Quistclose trusts have sometimes been considered to be purpose trusts, but the modern view is that they are conventional trusts for ascertainable beneficiaries, but with a specific condition (the failure of the purpose) for reversion.
The chancellor concluded that the express purpose of the trust was to fund the children's formal education, and not that they should receive their livelihood from the trust.
The purpose of the trust is clearly and unambiguously stated in the terms of the agreement itself.
The Trust Agreement sets out what appears to be a conflict between the settlor/trustee's right to revoke the trust at his discretion at any time, and the termination of the trust by delivery of the stock to the beneficiaries after they have all attained age twenty-five, or completed their education.
Trusts are commonly used as part of an individual's estate plan, to avoid probate and to obtain favorable tax consequences.
There must be a definite beneficiary or the trust must be a charitable trust, a trust for animals (specially provided for as a kind of honorary trust), or a trust for a noncharitable purpose (also a kind of honorary trust).
The grounds are breach of trust, lack of cooperation among co-trustees substantially impairing the administration of the trust, defects of the trustee that require removal in the best interests of the beneficiaries, or substantial change of circumstances.
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