Most family business owners are unaware of a trust that could help preserve the legacy and values of their business after being sold, according to Northern Trust’s 2025 Business Owner Benchmark.
The survey of 123 business owners found that 64% were unfamiliar with perpetual purpose trusts (PPTs), a noncharitable trust established to benefit an outlined purpose rather than an individual trustee. The legal structure can be used to ensure that certain social values or philosophies are prioritized over personal gain or to protect against the reselling of a business.
“In a PPT, you can write into the trust that the company can never be sold, or it can only be sold in very limited circumstances,” Eric Czepyha, director of business services at Northern Trust, told Crain Currency. “It’s not going to generate the greatest value for your business the way it would if you sold it to a private equity firm, but it’s probably the most certain way to ensure the ownership of your business does not change hands over 50 or 100 years.”
Notable examples of family-owned businesses that have instituted PPTs include the Michigan-based Zingerman’s food business and outdoor-apparel retailer Patagonia. In 2022, founder Yvon Chouinard transferred ownership of his company, then valued at $3 billion, into a PPT and a nonprofit that ensures Patagonia’s profits will be used to fight climate change. The maneuver also helped Chouinard’s family avoid paying billions of dollars in taxes on the sale of Patagonia.
“I think there needs to be more work done with business owners to get the word out about these alternative ownership strategies that might be a really good succession planning tool for business owners who are interested in long-term multigenerational ownership of their business,” Czepyha said of the PPT. “[Especially] if you’re a business owner who really cares about preserving the business and its tie to products it makes or the community it serves.”
This perspective aligns with Northern Trust’s Business Owner Benchmark, which found that 43% of respondents consider it important for their business to still exist 100 years from now. At the same time, 64% express a lack of confidence in their children’s ability to manage the wealth and businesses they’ll inherit.
The survey respondents, with a median age of 67, represent companies of all sizes across various industries.