Purpose trusts can be used in a number of ways. For example, one might be created to hold interests or voting rights connected with an asset finance transaction, or a joint venture, or to own the share capital of a private trust company. They can also be used for varied philanthropic purposes which would not necessarily meet the strict definition of "charitable".

Key Features

• Trusts can be established in Jersey for both charitable and non-charitable purposes. Such "purpose trusts" are not required to have any named or ascertainable beneficiaries.
• The purposes of such a trust can be extremely varied. For example, a trust could be created for the purposes of establishing a wholly owned company and entering into agreements relating to specified transactions.
• Purpose trusts can thus be used in a number of ways. For example, one might be created to hold interests or voting rights connected with an asset finance transaction, or a joint venture, or to own the share capital of a private trust company. They can also be used for varied philanthropic purposes which would not necessarily meet the strict definition of "charitable".
• Under Jersey law a non-charitable purpose trust must provide both for the appointment of an "enforcer" and for the appointment of a new enforcer when there is none. The duty of the enforcer is to enforce the terms of the trust in relation to its non-charitable purposes.
• The enforcer is not a trustee and a trustee cannot also be the enforcer. The law also makes specific provision for the resignation or removal of the enforcer.

If you would like to discuss Purpose Trusts please speak to Andrew, Ben or Stacy on our Wealth Management Team.