The stage has been set for major changes to the law relating to trusts, with a third reading of the Trusts Bill.
The bill will come into force 18 months after it receives the Royal assent, except sub-Part 3A of Part 9A which relates to the Financial Services Amendment Act 2019.
Principal changes include:
- clarification of key features of a trust and the duties of trustees;
- clear rules about when trustees are required to provide information to beneficiaries so that beneficiaries can enforce their rights;
- practical and flexible trustee powers that allow trustees to manage and invest trust property in the most appropriate way;
- options for removing and appointing trustees without having to go to court in straightforward cases
- modern dispute resolution procedures;
- permitting amendments to certain financial and commercial trusts to enable specified provisions of the Bill to not apply to those trusts.