Review of the Law of Trusts
Review of the Law of
Trusts
The Law Commission
has published its first issues paper in its review of the
law of trusts.
As readers may know, the Commission has
been asked to review the Trustee Act 1956 and trust law
generally. The Commission plans to tackle the review in 3
stages:
- Stage 1 will look at the Trustee Act 1956, the
Perpetuities Act 1964 and trust law generally,
- Stage 2
will consider the Charitable Trusts Act 1957, and
- Stage
3 will consider the trustee companies legislation.
The Commission will release a series of issues papers on different aspects of the law and the legislation. Each paper will ask questions and call for submissions and comments. The issues papers will all be published electronically.
The first issues paper is primarily a
background paper. Chapter 1 is purely introductory. Chapter
2 traces the development of the trust from its origins in
England through to the present day uses of the trust both in
New Zealand and internationally. Chapter 3 examines the key
features of the trust with a view to finding a working
definition that might possibly serve as a statutory
definition for a new Trustee Act or possibly a Trusts Act.
Chapter 4 looks at the Trustee Act and comparable overseas
legislation and refers to issues to which the Law Commission
has been alerted.
The paper asks for views about a
possible legislative definition of a trust, practical issues
with the Trustee Act, and whether the Act should continue to
be a default statute or whether it ought to contain more
mandatory provisions. The paper asks for responses to
specific questions and seeks comments on Act and the law
that might assist the Commission in its review.
The second
issues paper in Stage 1 is scheduled for publication in late
December
The second issues paper will cover concerns with
the use of trusts (especially family trusts) in New
Zealand.
Stage 1 of the review will include further issues
papers on:
- The Perpetuities Act 1964 and the variation
of trusts (scheduled for publication in the first quarter
2011);
- Trustees’ duties and beneficiaries’ rights,
and exemption clauses (second quarter of 2011);
- The
office of trustee and trust administration (fourth quarter
of 2011);
- Trustees’ powers, including delegation,
investment and insurance (fourth quarter of 2011).
-
Remaining issues such as trading trusts, non-charitable
purpose trusts, the Hague Trusts Convention, registration of
trusts and obligations of trust advisers (fourth quarter of
2011).
These dates are indicative only. Please check back for final dates.
ENDS
The Law Commission’s first Issues Paper in the review of the law of trusts, Review of Trusts Law in New Zealand: Introductory Issues Paper, is now available on the Law Commission’s website at www.lawcom.govt.nz/project/review-law-trusts .
The Commission is seeking comments and submissions on this paper by 28 February 2011.
Please email these to trusts@lawcom.govt.nz or post to Law Commission, P O Box 2590, Wellington 6011.