Purpose Trusts

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Reviewed by Stuart A. Green, JD

Last Updated: Aug 5, 2026

Read Time: 2 mins

South Dakota has the best and broadest dynasty purpose trust statutes in the U.S.

Generally, a Purpose Trust is a trust that is created for a purpose (something) rather than for beneficiaries (someone). Trusts generally have beneficiaries for whom the trust is established, for instance for individual family members or a charity. With a purpose trust, a trust enforcer is generally appointed to make sure the purpose is enforced. Additionally, the purpose trust also has a trust protector and an administrative directed trustee. The trust protector and enforcer can generally be the same person or committee. Once the purpose has ended, a purpose trust can convert to a beneficiary trust if desired and/or be distributed to family, friends and/or charity.

Broad purpose trust statutes are only available in a few states. South Dakota is one of a very few states that allows for purpose trusts to be established for any lawful purpose, not just for the pets or honoraries. South Dakota is unique in that it allows for a perpetual purpose trust (i.e., the purpose trust has no restriction as to length of time it can be in existence) with a specific unlimited duration.

Common Reasons for a Purpose Trust

Pet care
Maintenance of grave sites; also, support of religious gravesite ceremonies
Maintenance of family property (for example, antiques, cars, jewelry and memorabilia)
Maintenance of an art collection
Maintenance of family homes (residence and vacation)
Long-term maintenance of building, property or land
Maintenance of business interests
Royalties
Digital asset protection
To provide for a philanthropic purpose not qualifying for a charitable deduction
Maintenance of private family trust companies
As part of managing Trust Protectors and Asset Protection Trusts, the maintenance of Special Purpose Entities or Trust Protector Companies plays a crucial role in ensuring long-term control and oversight.

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