The previous legislation around trusts has not been overhauled or reviewed for a long time. Aligned to that are a myriad of court cases setting up common law positions, both old and new.
Often the current issues fit like square pegs in round holes. Many common-sense outcomes in today’s world have been frustrated by the legislation lagging behind. Trust law is no exception.
We therefore welcome the new Trust Act 2019 (the Act). While passing into law on 30 July 2019, it does not come into effect until 30 January 2021. The interim time frame allows a true knowledge of what is proposed to be digested; with variations to be made both to documentation and best practice systems. These are being prepared and introduced so immediate compliance with the new parameters are expected and completed.
A heads-up then about compliance requirements. You will be reminded about the duties required of those running the trusts, namely the trustees and settlors; that the term of a trust may be longer than the current 80 years; that those who benefit from the trust may be able to obtain more information in certain circumstances; that written documents must be held and easily accessible; and that reviews of trusts decisions will be more prevalent.
As a result of the new Act, it is imperative that your trust is in order before the Act comes into effect. To assist with this, our trust clients will soon receive a letter from us explaining in more details what is required and urging you to make an appointment with us to carry out a review of your Trust.
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