Purpose Trusts

Purpose Trusts have many uses. They may be used in specialist circumstances for both commercial and not-for profit transactions. Aviation, shipping and property financing can create the need for legal interests, voting rights and residuary title to be held independently. They may also be used for hybrid-quasi charitable arrangements.

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Key Features

• Purposes Trusts can be set up in Gibraltar for both charitable and non-charitable purposes. Such "purpose trusts" are not required to have any named beneficiaries
• The purposes of such a Trust can be extremely varied. A trust may be created to own a wholly owned company and enter into agreements relating to specific transactions
• The Trust can be structured to appoint a nominated Protector, who is appointed to undertake certain pre-agreed duties.
• The Protector is not a trustee and a trustee cannot also be a Protector. He may appoint replacement trustees. The Trust Deed also makes specific provision for the resignation of the Protector and replacement assets are distributed in a pre-agreed way.