Purpose trusts in English law
Have you ever heard of a piggy bank? It's a special place where you keep your money safe, right? Well, a purpose trust is kind of like a piggy bank for grown-ups.
In English law, a purpose trust is a special type of trust where the money or property is held for a specific purpose, rather than for a person. Let's say someone wanted to build a hospital but didn't have enough money to do it all by themselves. They could create a purpose trust and put money into it specifically for the purpose of building the hospital.
The trust would be managed by someone called a trustee, who would make sure that the money was used only for the purpose of building the hospital, just like how your parents might manage your piggy bank and make sure you only use it to buy things you really need.
Now, there are some rules that go along with purpose trusts. For example, the purpose of the trust has to be for something that is considered legally acceptable. In other words, you can't create a purpose trust to fund something illegal, like buying drugs or weapons.
Purpose trusts can also be set up to last for a specific period of time or until the purpose has been accomplished. Once the purpose has been accomplished, any money or property that is left over would usually be given back to the person who created the trust, just like how you might get the leftover money in your piggy bank back from your parents if you no longer need it.
Overall, purpose trusts can be a helpful way for people to fund specific projects or causes that they care about, just like a piggy bank can help you save up for something you really want.
In English law, a purpose trust is a special type of trust where the money or property is held for a specific purpose, rather than for a person. Let's say someone wanted to build a hospital but didn't have enough money to do it all by themselves. They could create a purpose trust and put money into it specifically for the purpose of building the hospital.
The trust would be managed by someone called a trustee, who would make sure that the money was used only for the purpose of building the hospital, just like how your parents might manage your piggy bank and make sure you only use it to buy things you really need.
Now, there are some rules that go along with purpose trusts. For example, the purpose of the trust has to be for something that is considered legally acceptable. In other words, you can't create a purpose trust to fund something illegal, like buying drugs or weapons.
Purpose trusts can also be set up to last for a specific period of time or until the purpose has been accomplished. Once the purpose has been accomplished, any money or property that is left over would usually be given back to the person who created the trust, just like how you might get the leftover money in your piggy bank back from your parents if you no longer need it.
Overall, purpose trusts can be a helpful way for people to fund specific projects or causes that they care about, just like a piggy bank can help you save up for something you really want.