Guernsey statutory law has provided for non-charitable purpose
trusts (usually known simply as `purpose trusts') since the
Trusts (Guernsey) Law, 2007 (as amended) was brought into force in
March 2008. This type of trust operates much in the same way as the
more traditional types of trust structures and the form and
contents of the trust documents are usually similar. The trustee
still holds the trust property on trust subject to the powers and
duties set out in the trust instrument and the legislation and the
same requirements for a valid trust apply.
However, there are two key differences which mean that to those
unfamiliar with them purpose trusts can appear to be a rather
different beast. Firstly, the trust will be established for one or
more non-charitable purposes (instead of or as well as
beneficiaries or charitable purposes in a hybrid trust), with the
trustee's overriding fiduciary duties including acting in the
advancement of those purposes (instead of or as
