Perpetual Trusts are legal arrangements designed to hold and manage assets indefinitely, without a specified end date. These trusts can continue to operate for generations, ensuring that the trust’s assets are preserved and distributed according to the grantor’s wishes.
Typically, Perpetual Trusts are established for specific purposes such as supporting charitable causes, providing for future generations, or managing family wealth. They are often structured to comply with laws that allow trusts to exist beyond the traditional rule against perpetuities, which limits the duration of trusts to a certain number of years.
For example, a family might create a Perpetual Trust to provide financial support for educational expenses of descendants, with the trust’s assets managed by a trustee. The trust could specify that distributions are made for this purpose while keeping the principal amount intact for future beneficiaries.
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