Heckerling Conference 2025: Exploring a Purpose-Driven Future

The HeirSearch team started 2025 by attending the 59th Annual Heckerling Institute on Estate Planning. Held once again in Orlando, Florida, from January 13th to 17th, the Heckerling Conference is widely regarded as the premier annual event for estate planning professionals.

Our team had the opportunity to engage with leading experts and deepen our knowledge of industry trends by networking with like-minded professionals, dedicated to advancing estate and trust planning practices. This invaluable experience enhances our ability to serve our clients and positions us as the trusted resource for legal, estate, and trust professionals seeking to solve complex heir search challenges.

Among the standout sessions, one presentation captured our attention: Ellen K. Harrison and Natalie Reitman-White‘s exploration of purpose trusts. Purpose trusts represent a fascinating evolution in trust planning, offering innovative solutions for business succession and long-term legacy goals.

Below, we dive deep into purpose trusts, their unique benefits, and how they are transforming the estate planning landscape.

Understanding Purpose Trusts

Traditionally, trusts involve three primary parties: the grantor, trustee, and beneficiaries. When a trust is established, the trustee manages its assets for the named beneficiaries’ benefit, as directed by its terms. Charitable trusts are an exception, focusing on philanthropic goals rather than specific beneficiaries.

Over the past decade, however, a new category has emerged: the non-charitable purpose trust. Enabled by legislative changes in states like Delaware, New Hampshire, South Dakota, Utah, and Wyoming, these trusts can be established for almost any lawful purpose, provided they are reasonable, attainable, and aligned with public policy.

Unlike traditional trusts, purpose trusts do not have beneficiaries to oversee the trustee’s actions. Instead, they require an independent trust “enforcer” to ensure the trustee fulfills its stated purpose.

Sometimes, a separate trust protector can modify the trust as circumstances change. This framework is particularly compelling for individuals and business owners seeking to align their legacy with enduring values.

Purpose Trusts in Action: The Patagonia Case Study

The 2022 transition of Patagonia to a purpose trust is the most high-profile example of this innovative structure. Yvon Chouinard, Patagonia’s founder, transferred the company’s voting stock to the Patagonia Purpose Trust, ensuring its commitment to environmental stewardship. Meanwhile, the nonvoting stock was donated to a nonprofit organization that uses Patagonia’s profits—approximately $100 million annually—to combat climate change.

Chouinard’s decision exemplifies the core advantage of purpose trusts: the ability to enshrine values and mission into a business’s DNA, ensuring they persist long after the founder’s involvement. The purpose trust protects the company’s “why,” while providing job security for employees and preserving the integrity of its operations.

Why Consider a Purpose Trust?

For estate and legal professionals advising business owners, purpose trusts offer an unparalleled opportunity to:

1. Preserve Legacy: By transferring a business to a purpose trust, founders can safeguard their values and ensure their company remains committed to its mission in the long term.
2. Support Employees and Communities: Purpose trusts enable businesses to prioritize employee welfare, community benefit, and environmental responsibility without being constrained by profit-maximization pressures.
3. Ensure Stability: Founders without heirs interested in running their business can use purpose trusts to maintain operational continuity and avoid the risks of selling to external buyers.

These features make purpose trusts a compelling option for clients exploring business succession strategies with a focus on long-term impact.

Challenges and Considerations

While purpose trusts offer exciting possibilities, they also carry complexities requiring careful navigation. In order to maximize a purpose trust’s benefit for a client, legal professionals in advisory roles must:

• Draft precise trust instruments that clearly define the trust’s purpose and provide mechanisms for enforcement and adaptation.
• Address governance issues, including the roles of trustees, enforcers, and protectors, to ensure accountability.
• Consider state-specific regulations, as laws governing purpose trusts vary widely.
• Advise clients on tax implications, including potential gift and estate taxes and the trust’s classification for income tax purposes.

Building a Purpose-Driven Future

Purpose trusts are part of a broader movement to rethink traditional ownership and governance structures. Companies like Patagonia, Organically Grown Company, and Clegg Auto have demonstrated that aligning ownership with mission can benefit stakeholders and the planet. These innovative structures are gaining traction as tools to address pressing challenges such as wealth inequality, environmental degradation, and the need for quality jobs.

As this movement grows, estate, trust, and legal professionals must stay informed. Purpose trusts offer a unique opportunity to support clients in leaving a meaningful legacy while addressing complex succession planning needs.

For estate and trust professionals needing to locate heirs or beneficiaries, HeirSearch offers unparalleled service and commitment with a 97% success rate.

Contact us to learn more about our process and how we can support your needs. 

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