Test 4 of scheduled publication 29.01.24

Author: Sarah Harvie-Clark

PDF Published: Monday 29 Jan 2024 (SB 23-12)

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Overview
Report

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Overview
Report
- Executive Summary
- Introduction and overview of the briefing
- Background to the Bill
  - Scottish Law Commission Bill: special procedure
  - An introduction to the Bill and its policy background
    
    Part 1: trust law
    
    The use of trusts in practice
    
    The Commission's approach
    
    What does the Bill do
    
    Part 2: succession law
    
    Unlawful killers as executors
    
    Part 3: miscellaneous sections, including key definitions for Parts 1 and 2
- An introductory guide to trusts
  - Trust basics
    
    A tripartite relationship
    
    Public and private trusts
    
    Who can be a truster, a trustee and a beneficiary?
    
    How a trust is born
    
    Trust property, trust purposes, powers and duties
    
    When something goes wrong with a trust
  - Some red herrings to watch out for
  - The current legal framework applying to trusts
  - Trusts with an international element
  - The wider policy context relating to trusts
    
    The taxation of trusts
    
    Other systems of statutory regulation
    
    Transparency and ownership of land and buildings
    
    Key policy developments
  - Should a trust continue to exist at all?
- Part 1 of the Bill: trust law
  - Chapter 1: how someone becomes a trustee, and how they stop being a trustee
    
    Sections 1-3: appointment and assumption of trustees
    
    The existing law
    
    Bringing in new trustees (sections 1-3)
    
    The Commission's consultation
    
    Sections 5-8: resignation and removal of trustees
    
    The existing law
    
    Resignation of trustees (section 5)
    
    The Commission's consultation
    
    The court's powers to remove trustees (section 6)
    
    The Commission's consultation
    
    Trustees removing a trustee (section 7)
    
    The Commission's consultation
    
    Beneficiaries removing a trustee (section 8)
    
    The Commission's consultation
    
    Section 10: discharge of trustees
    
    Guardians of under 16s discharging trustees
    
    The Commission's consultation
  - Chapter 2: how trustees make decisions
    
    The existing law
    
    Section 11: what is required before the trustees can take a decision
    
    The Commission's consultation
    
    Section 12: making the decision
    
    The Commission's consultation
  - Chapter 3: powers and duties of trustees
    
    Section 13 of the Bill: a general power for trustees
    
    The Commission's consultation
    
    Section 14 of the Bill: the court would be able to add extra powers
    
    The Commission's consultation
    
    Section 15: a power to take out indemnity insurance
    
    The Commission's consultation
    
    Sections 16 and 17: trustees' investment powers
    
    The Commission's consultation
    
    Section 18: the appointment of agents and the delegation of powers
    
    Any business or professional provider
    
    What powers can be delegated?
    
    Trustees as (paid) agents
    
    The Commission's consultation
    
    Section 19: transferring trust property to nominees
    
    What section 19 would do
    
    The Commission's consultation
    
    Sections 20 and 24: advances from capital and income
    
    Section 20: advances from capital
    
    The existing law
    
    What section 20 would do
    
    The Commission's consultation
    
    Section 24: power to make payments from income
    
    What section 24 would do
    
    The Commission's consultation
    
    Sections 21-23: apportionment between or among beneficiaries
    
    Section 21: power to apportion between or among beneficiaries
    
    Section 22: apportionment for regular payments over time
    
    Section 23: three further rules about apportionment
    
    The Commission's consultation
    
    Sections 25-26: trustees' duties to provide information to beneficiaries
    
    What sections 25 would do
    
    What section 26 would do
    
    The Commission's consultation
    
    Section 27: trustees' duty of care
    
    What section 27 would do
    
    The standard of care
    
    The effect of indemnity clauses and immunity clauses
    
    The Commission's consultation
    
    Section 29: when a trustee does something they have no power to do
    
    What section 29 would do
    
    The Commission's consultation
    
    Sections 28, 30 and 31: breaches of fiduciary duties
    
    The Commission's consultation
  - Chapter 4: the trust's legal relationships with the outside world
    
    Section 34: trustees enter into a contract
    
    What section 34 would do
    
    The Commission's consultation
    
    Section 35-37: trustees' liability under the law of delict
    
    What section 35 would do
    
    The Commission's consultation
  - Chapter 5: how long a trust can last
    
    Section 41(1): duration of a trust
    
    Section 41(2): accumulation of income
    
    Section 41(3) and (4): various technical rules
    
    The Commission's consultation
  - Chapter 6: private purpose trusts
    
    The basic concept: section 42
    
    Supervisors: sections 45, 46-48
    
    Court applications: sections 43 and 44
    
    The Commission's consultation
    
    The basic concept
    
    Trust purposes in writing
    
    Trust purposes of a private purpose trust
    
    Special restrictions on who can be a trustee
    
    Record-keeping by trustees
  - Chapter 7: the role of the protector in a trust
    
    What sections 49-53 of the Bill would do
    
    The Commission's consultation
  - Chapter 8: varying or terminating a private trust and the powers of courts in relation to trusts
    
    Sections 54-60: variation and termination of private trusts
    
    The existing law
    
    What sections 54-60 would do
    
    The Commission's consultation
    
    Section 61: altering the trust purposes where there has been a material change of circumstances
    
    The Commission's consultation
    
    Sections 62-63: ex officio trustees
    
    The Commission's consultation
    
    Section 64: defective exercise of trustees' discretion
    
    The Commission's consultation
    
    Section 65: expenses of litigation by the trust
    
    What section 65 would do
    
    The Commission's consultation
- Part 2 of the Bill: succession law
  - Section 71: special destinations ('mini wills' in title deeds)
  - Section 72: the deceased's spouse or civil partner
    
    The current law
    
    What is proposed in the Bill
    
    Response to the Scottish Government's consultation
Sources

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Scottish Law Commission. (2011). Discussion Paper on Supplementary and Miscellaneous Issues, Discussion Paper Number 148, para 11.3. Retrieved from https://www.scotlawcom.gov.uk/files/4713/0157/0158/dp148.pdf

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Scottish Law Commission . (2014). Report on Trust Law, Scot Law Com Number 239, para 14.10. Retrieved from https://www.scotlawcom.gov.uk/files/4014/0904/0426/Report_on_Trust_Law_SLC_239.pdf

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Scottish Government. (2023, February 15). Email from the Scottish Government to SPICe.

Scottish Law Commission. (2011). Consultation Paper on Defects in the Exercise of Fiduciary Powers. Retrieved from https://www.scotlawcom.gov.uk/files/1013/2342/1382/defects_fiduciary__powers.pdf

Scottish Law Commission. (2011). Collated responses to Consultation Paper on Defects in the Exercise of Fiduciary Powers.

Robbie, J. (2018). Death, Divorce and Defective Drafting. Edin. L.R. 2018, 22(2), 307-313.

Wortley, S. (2022). The meaning of Succession (Scotland) Act 2016 section 2: statutory interpretation and survivorship destinations, Jur. Rev. 2022, 4, 179-196.

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Scottish Government. (2019). Law of Succession: Consultation. Retrieved from https://www.gov.scot/publications/consultation-law-succession/

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