Hybrid Or Non-Charitable Purpose Trusts

Introduction

The purpose of this briefing note is to set out some of the benefits of Guernsey purpose trusts, whether hybrid or non-charitable, the main issues to consider when contemplating the establishment of a purpose trust, their main features and some of their uses. Primarily, the benefits revolve around wealth management and preservation, but they can serve many purposes and take many forms, depending on the requirements in each particular case.

What is a purpose trust?

Any trust established to further a purpose (whether charitable or non-charitable) is strictly speaking, a purpose trust. However, trusts established to further a charitable purpose are commonly referred to as "charitable trusts" and trusts established to further a non-charitable purpose as "purpose trusts". We adopt that terminology in this memorandum. Traditionally, trusts were established to provide either for beneficiaries or to further a charitable purpose with trusts established for