Honorary Trust or Purpose Trust

Question 1

HONORARY TRUSTS OR PURPOSE TRUSTS

Answer 1

An honorary or purpose trust is a trust that is not for a charitable purpose and has no private beneficiaries. Honorary trusts are commonly established for the benefit of pets or for the maintenance
of burial places. Under the common law, because there is no human beneficiary to enforce an honorary trust, the trustee is “on their honor” to carry out its terms. However, under the UTC, the trust is enforceable by someone named in the trust instrument or appointed by the court

Question 2

Duration

Answer 2

Absent special statutes, many jurisdictions will void an honorary trust (not for the care of animals) on the basis of the Rule Against Perpetuities if its duration may be more than a (human) life in being plus 21 years. The UTC, however, expressly provides that an honorary trust (not for the care of animals) may not be enforced for more than 21 years.