A Guide To Non-Charitable Purpose Trusts In Jersey

Purpose trusts have become an increasingly important part of the Trusts (Jersey) Law 1984 (as amended) (the "Trusts Law"). Unlike traditional trusts there is no need for a purpose trust to have a living beneficiary. The trust can be established and exist for a purpose, for example holding the shares of a special purpose vehicle in what is commonly known as an "orphan" structure. The uses of a purpose trust are varied and are described in greater detail below.

Validity and duration

A purpose trust, like any other trust, must have trustees.  Unlike traditional trusts however, a purpose trust is also required to have an enforcer whose duty it is to enforce the trust in relation to its stated purposes.  The enforcer calls the trustees to account for the trust fund and ensures that the trustees are acting in accordance with the terms of the trust.  An enforcer of a purpose trust cannot also be the trustee of that trust, although there is nothing to prevent one being a