Non-charitable purpose trusts in Guernsey

Traditionally, a valid trust requires at least one beneficiary capable of benefiting. The reason for this restriction lies in the enforceability of the trust — if there is no beneficiary to enforce the trust, who will ensure that the trustees are doing as they should?

However, while many elements of trust law are as they always were, one of the attractions of trusts is that they are a flexible, evolving concept, developed to cater for changing times and capable of adapting to modern life.

This evolution has paved the way for purpose trusts, which under English law are permitted in certain circumstances. For instance, charitable trusts and trusts for certain kinds of limited purpose are permitted, but with a number of restrictions…

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