These trusts must be created by an instrument in writing and the terms must include the appointment of an enforcer.The enforcer has a fiduciary duty to enforce the trust and may be an individual, group of individuals or a corporate provided it is a different person from the trustee.
Heritage can assist with the creation and on-going administration of Guernsey purpose trusts which may be used in the following situations:
- Family businesses – used by entrepreneurs to ensure the continuity of their business through generations, for example holding voting shares in a company so that the descendants do not have the ability to sell or wind up the business
- Quasi-charitable purposes – where there is doubt as to the validity of the charitable purpose falling within the strict four recognised heads of charity
- Special Purpose Vehicles ("SPVs") – in securitisations, to hold the shares in an ‘orphan’ SPV
- Private trust companies – to incorporate and hold shares in a private trust company, acting as trustee for a trust or group of trusts