Non-Charitable Purpose Trusts: The Missing Right to Forego Enforcement
Cambridge University Press, Trusts and Modern Wealth Management, 486-509, 2018
23 Pages Posted: 3 Jan 2020
Date Written: April 4, 2017
Orthodox trust law invalidates non-charitable purpose trusts on the basis of the beneficiary principle. However, in the last two decades, various offshore trust jurisdictions have begun to provide for non-charitable purpose trusts via legislation and Hayton has even suggested that they may be permitted by simple drafting through the provision of an enforcer even in onshore trust jurisdictions without special legislation. This paper sets out the reasons why Hayton is wrong and explains the true basis for the objection to the non-charitable purpose trust. It also explains why charitable trusts are a hybrid of public and private law.
Keywords: non-charitable purpose trust, charitable purpose trust, powers, offshore trusts, tax avoidance
JEL Classification: K
Suggested Citation: Suggested Citation