Purpose Trust

The concept of the purpose trust was introduced into the Isle of Man by the Purpose Trustees Act 1996. A purpose trust is a trust established to fulfil a particular purpose, rather than for the benefit of beneficiaries. There are no beneficiaries who can be taxed as the ultimate owners or receivers of the assets or income of the trust.

The purpose of the trust must be certain, reasonable and lawful, and it must not be contrary to public policy nor immoral. The purpose trust has an enforcer, who is completely independent of trustees, with strong statutory powers to ensure the purposes of the trust are properly carried out. There is no protector. The trust cannot exceed 80 years, and at the end of the trust period, the assets revert to the recipient.