Commission presents recommendations on trusts
30 Mar 07
Draft measures would simplify law on variation and termination
Problems surrounding the law on public and private trusts are addressed in a report from the Scottish law Commission published today.
In its Report on the Variation and Termination of Trusts, with accompanying draft bill, the Commission addresses three main areas of difficulty.
New provisions would confirm the power of beneficiaries of a trust, where all are of full age and capacity, to agree to vary or terminate the trust or resettle its property in another trust. Neither the truster nor the court would be able to prevent this. However neither parents not guardians should be able to consent on behalf of an underage child because of possible conflict of interest.
The court's power to approve a variation or termination on behalf of certain classes of unascertained or incapable beneficiaries is clarified to deal with various situations that have given rise to difficulty.
Finally, in relation to charities, public trusts and endowments, the Commission recommends that the Office of the Scottish Charities Regulator should be able to deal with reorganisations, under simplified criteria.
The report can be viewed on the Commission's website www.scotlawcom.gov.uk .