Unlike traditional trusts, the South Dakota Purpose Trust, considered the most flexible in the nation, is a type of trust which has no beneficiaries. A Purpose Trust can be established to hold and protect assets for a specific purpose and not for the benefit of beneficiaries.
Similar to a charitable remainder trust which exists to support a particular charity or charitable intent, the Purpose Trust can be created to support or maintain a specific purpose, in perpetuity uniquely under South Dakota law.
Examples of a Purpose Trust include: Business Interests; Private Trust Companies (PTCs); Royalties; Real Estate; Art; Cryptocurrency; Pet Care; Grave Sites; and Cryogenics.
Settlors of Purpose Trusts and their advisors can harness the power of South Dakota’s trust laws – dynasty trusts, privacy, and asset protection – while maintaining a great deal of direction and control utilizing the directed trust structure, appointing a trust protector, and naming an enforcer (which can be the same person). As long as the Purpose Trust is established for a valid purpose (not in violation of public policy), the trust can exist forever or be converted to a beneficiary trust at the direction of the trust protector if the purpose comes to an end.
Be sure to watch the video below for additional information about the South Dakota Purpose Trust.
For questions regarding the South Dakota Purpose Trust or for more information on South Dakota’s powerful modern trust laws, please contact Bridgeford Trust via our contact page.
