Using Purpose Trusts to Own Private BusinessesUsing Purpose Trusts to Own Private Businesses

“What if I sold my business to a purpose trust?” Advisors are hearing this question from their business-owning clients more frequently these days. The initial buzz among the business owner community started when Yvon Chouinard transferred ownership of Patagonia to a purpose trust in 2022.¹ However, business owners and their advisors are beginning to recognize that purpose trusts aren’t just for billionaires, nor do they require the owner to donate their business to charity. In fact, a purpose trust transaction, when structured properly, can allow the business owner to generate liquidity from their ownership in the business while at the same time ensure that the legacy of their business and the values that it represents are preserved for ...