The Offshore Purpose Trust

The concept of a trust having as its object the carrying-out of certain purposes (rather than for the benefit of individual beneficiaries) has long been recognised. Enforceability of such trusts has however been subject to strict limitations, both in England and in jurisdictions which have drawn their law of equity from that country. In 1989, Bermuda legislated to extend the scope and capabilities of the purpose trust well beyond that hitherto, treated as enforceable by the Courts and recognised by standard texts. The result has been to provide a legal relationship, beyond traditional fixed and discretionary trusts, which is being used both in private client and corporate or commercial situations. Bermuda is the undisputed leader in the development of purpose trusts to a sophisticated level.