Bove & Langa have made available for download their article, “The Continuing Rise of the Purpose Trust,” published in the Leimberg Newsletter. The Introduction is as follows:
Little by little the purpose trust has been making its way into U.S. law and estate planning. In the Leimberg Newsletter #2711, LISI contributor Alexander Bove reviewed the basics of purpose trusts and how they could be used to hold a family business in perpetuity, while still retaining control and providing benefits for the family. He pointed out that, although several states permit the use of purpose trust through Uniform Trust Code section 409, the only state that at that time had a “stand-alone” purpose trust statute was South Dakota. South Dakota must now make room for Oregon, which just passed its own purpose trust law, this one with a special feature – the Oregon purpose trust must have a “business purpose.” Thus, there remains a question as to whether it can be established to maintain a family compound, for example, or a family art collection, but in any event, Oregon may be complimented for its innovative move.
Posted by Jessica Zhang, Associate Editor, Wealth Strategies Journal.