Public express trusts are a type of trust established to benefit a charitable or public purpose. A public express trust is created by a grantor to donate money or other resources into a trust with a public interest, often to take advantage of the tax and regulatory benefits in using a public express trust. Many benefits are possible from using public express trusts if the entity is properly structured, including: reduced or eliminated taxes, not being subject to the rule against perpetuity, and not requiring a specific beneficiary.
In order to take advantage of the benefits of other charitable trust, the public express trust must be structured according to Federal and state regulations. For one, the trust must have a recognized public benefit. Most charitable purposes will constitute a charity, including financial donations that benefit 501(c)(3) organizations and property donations for public benefit like to establish a park. A public express trust can even constitute a charitable trust without a specified beneficiary if the trustee is directed to choose charitable entities to benefit. Importantly, the trust must be irrevocable and not be created substantially for the benefit of the grantor.
[Last updated in October of 2023 by the Wex Definitions Team]
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