What non-charitable purpose trusts are, how they work in Wyoming, common uses, and key drafting considerations including the required trust enforcer.
When most people think of a trust, they imagine one created to benefit family members, heirs, or a favorite charity. Wyoming law also allows a unique option: the non-charitable purpose trust.
What Is a Non-Charitable Purpose Trust?
A non-charitable purpose trust is a legally recognized trust that does not have beneficiaries in the traditional sense. Instead of distributing assets to people, it exists to accomplish a specific, lawful purpose that is not contrary to public policy and is reasonably achievable.
Because there are no beneficiaries to enforce the trust, Wyoming law requires appointment of a trust enforcer. The enforcer ensures the trustee is carrying out the stated purpose.
Common Uses of Non-Charitable Purpose Trusts
Examples include:
• Maintaining family property (e.g., ranch, vacation home, private land) for future generations.
• Caring for animals (pet or livestock care, horses, or show animals).
• Business succession planning (holding shares in a closely held company to ensure continuity).
• Preserving collections (art, antiques, heirlooms) with instructions for display or safekeeping.
• Philosophical or personal wishes (maintaining a burial site or funding family reunions).
Why Choose Wyoming?
Wyoming is a leading trust jurisdiction offering:
• Recognition under statute—non-charitable purpose trusts are expressly authorized.
• Strong privacy protections—no public disclosure of trust documents.
• No state income tax—trust assets are not subject to state-level income tax.
• Trust-friendly courts—a record of upholding innovative structures.
Important Considerations
These trusts require careful drafting to remain valid and enforceable:
• Duration—Wyoming allows purpose trusts to last up to 1,000 years.
• Enforcer—appoint a qualified trust enforcer or the trust may fail.
• Clear purpose—state a specific, practical purpose to avoid challenges.
Conclusion
Non-charitable purpose trusts can preserve assets, carry out unique wishes, and maintain control for generations. Wyoming’s progressive trust laws make it an excellent jurisdiction to establish this structure.
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FAQs
Do non-charitable purpose trusts have beneficiaries?
No. They exist to carry out a purpose, not to benefit individual beneficiaries. An enforcer is required to hold the trustee accountable.
How long can a Wyoming purpose trust last?
Up to 1,000 years under Wyoming law.
Who can serve as the trust enforcer?
An individual or entity designated in the trust instrument; if not designated, a court can appoint one. The enforcer’s duty is to ensure the trustee fulfills the stated purpose.
Can a purpose trust own a business interest?
Yes. It can hold shares in a closely held company to promote continuity and governance objectives specified in the trust.