Unlike a traditional discretionary trust, a Specific Purpose Trust does not have beneficiaries, and instead is established for a specified non-charitable purposes. Also known as a Quistclose Trust in the context of a creditor lending money to a debtor for a specific purpose, the Specific Purpose Trust is created when the assets are vested in the trustee of the Trust for a specified purpose.

Like traditional trusts requiring certainty and validity, a Specific Purpose Trust also requires a trustee to administer the trust in accordance with the terms of the trust deed and are subject to the general fiduciary duties under Trusts Law. Unlike traditional trusts, the Specific Purpose Trust will vest and terminate once that purpose has been fulfilled, unless the terms of the trust deed state otherwise.

Our expert trust lawyers have a broad range of expertise dealing with various types of trusts, and have worked closely with clients to appropriately enforce key trust provisions against third parties. We have assisted clients understand their obligations, rights and entitlements in relation to the enforceability of certain types of trust structures, particularly specific purpose trusts.

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