The article is entitled “How Will the Patagonia’s Perpetual Purpose Trust Be Enforced?” The subject of both the article and the referenced section of the Handbook is the so-called purpose trust, a noncharitable property-management arrangement that has no beneficiaries. Assuming the enforcer is a fiduciary to whom then would his or her duties run? If the enforcer is not a fiduciary then the terms of the “trust,” as a practical matter, are perversely unenforceable. A trust whose terms are unenforceable is not a true trust. In a nutshell this is the fiduciary conundrum inherent in the Uniform Trust Code’s version of the purpose trust.

Source: Forbes October 15, 2022 16:58 UTC